Driven by the national strategy to vigorously promote new quality productive forces, the modernization of the Traditional Chinese Medicine (TCM) industry is facing a historic opportunity. Grounded in the theory of new quality productive forces, this paper constructs a systematic analysis framework linking “policy environment, ” “scientific and technological talent and industrial chain structure, ” and “modernization level. ” Using survey data from TCM practitioners, this paper empirically tests this framework through Structural Equation Modeling (SEM) . The findings reveal that: (1) the policy environment serves as the fundamental driver of TCM industry modernization; (2) scientific and technological talent acts as a more critical transmission hub than the industrial chain structure, with innovation capability and continuous learning capacity identified as current major shortcomings; (3) the internal development of the industrial chain is uncoordinated, as upstream cultivation and supply, along with downstream service terminals, are relatively lagging; and (4) despite active scientific research, the ability to translate scientific and technological achievements into industrial benefits remains weak. Consequently, this paper proposes elevating the development of new quality productive forces in the TCM industry to a national strategy. It recommends systematic measures—such as establishing high-level coordination mechanisms, reconstructing talent cultivation systems, building organized innovation ecosystems, and improving standards and financial support— to promote high-quality, leapfrog development in the TCM industry.