Objective: The paper explores the application of family-based nursing intervention in children with pneumonia and its impact on medical expenses. Methods: 68 children with pneumonia from January 2021 to January 2022 were selected as subjects. The clinical data and hospitalization medical expenses of the children were collected. They were randomly divided into two groups, the observation group and the control group, with 34 cases in each group. The control group received routine nursing intervention, while the observation group received family-based nursing intervention. The medical expenses, hospitalization time and family satisfaction were compared between the two groups. Results: The medical expenses and hospitalization time of the observation group were lower than those of the control group (P﹤0.05), and the family satisfaction of the observation group was higher than that of the control group (P﹤0.05).however, the common features of the 68 children with pneumonia were that the drug expenses were the highest, followed by examination expenses, treatment expenses, bed expenses and others. Conclusion: Family-based nursing intervention is effective in children with pneumonia, which can reduce medical expenses, shorten hospital stay, and improve family satisfaction.