Abstract: Traditional Chinese medicine (TCM) has garnered increasing attention globally, with its modernization becoming a prominent research focus both within China and internationally. However, the lack of a precise definition for TCM modernization has hindered clear guidance for its development. Additionally, cancer remains a significant global public health challenge, largely untreatable with current methods. Therefore, a comprehensive understanding of TCM modernization is crucial for its evolution, revolution, drug discovery, and cancer therapy. This study provides an overview of the history, theory, characteristics, and evolution of TCM, highlighting its potential in cancer prevention and treatment. We propose a definition for TCM modernization, innovative Chinese medicine (ICM), and elucidate strategies to elevate TCM from a supporting role to a leading one. Electronic databases such as PubMed, Web of Science, ScienceDirect, and Clinical Trials were utilized to retrieve relevant literature spanning from 1979 to 2024, with most publications being from the last five years, using keywords like “Traditional Chinese medicine”, “Cancer”, “Mechanism”, and “Clinical trial”. In this study, we introduce the theory of TCM modernization following target identification and initial compound screening: ICM, defined by “3 D” elements: definite active ingredient composition and content, determined functional mechanism, and detection through evidence-based medicine. Overall, the “3 D” definition of ICM will establish a standard for ICM, accelerate TCM modernization, enhance drug discovery targeting cancer and various human diseases, and benefit patients worldwide.