Sepsis is increasingly recognized not just as an infection-triggered systemic inflammatory response but as a life-threatening condition marked by organ dysfunction resulting from a dysregulated host response. Among its most severe consequences is multiple organ dysfunction syndrome (MODS), which significantly worsens patient prognosis. Currently, effective pharmacological interventions for sepsis and sepsis-induced MODS are limited, and mortality remains high. Traditional Chinese medicine (TCM) offers extensive experience in both preventing and managing sepsis, with its diverse bioactive compounds, molecular targets, and pathways contributing to therapeutic effects. This review systematically searched CNKI, Wanfang, PubMed, and Web of Science using the keywords ‘Sepsis,’ ‘Organ dysfunction,’ and ‘Traditional Chinese medicine’ to examine the role of TCM formulations in addressing sepsis with MODS. The study summarizes the current understanding of TCM strategies, providing insights to support clinical practice and guide the development of novel therapeutic agents.