Chinese dry eye consensus 2020 updated the definition and classification of dry eye, stressing tear-film instability as the core mechanism of dry eye.The classification criteria are complemented with tear component abnormality as an important category.As a P2Y₂ receptor agonist, diquafosal sodium is a novel pharmaceutical agent for dry eye treatment.Diquaphosol sodium eye drops can promote the secretion of mucin, fluid and lipid, improve the composition of each layer of tear film, and comprehensively improve the stability of tear film.It also has the function of repairing corneal epithelium, so it can be used to treat ocular surface injury caused by dry eye.Targeting at the inflammation involved in the pathogenesis of dry eye, it can inhibit the inflammatory pathways and the expression of inflammatory factors.The advantages and effectiveness of diquaphosol sodium eye drops in the treatment of dry eye have been demonstrated in multi-center clinical trials, and the Chinese dry eye consensus 2020 has identified diquaphosol sodium eye drops as the first-line treatment for fluid deficient dry eyes and one of the first choices in the treatment of mucin-deficient dry eyes.In this paper, the mechanism, clinical efficacy and safety of diquaphosol sodium in different types of dry eyes, the treatment of different abnormal tear film components and the application of diquaphosol sodium in the Chinese dry eye consensus 2020 were reviewed, so as to deepen its new progress in the treatment of dry eye.