This study investigates the therapeutic effect of montelukast sodium combined with budesonide in children with cough variant asthma (CVA) and its influence on the levels of forced expiratory volume in one second (FEV1) and forced vital capacity (FVC). A total of 112 children with CVA treated in our hospital from January 2019 to January 2021 were selected. According to the different treatment methods, they were divided into control group and experimental group, and the clinical data of each group were collected retrospectively. The control group was treated with budesonide, and the study group was treated with Montelukast sodium combined with budesonide. The clinical therapeutic effect, lung function level, adverse reactions and inflammatory factors were compared between the 2 groups. The effective rate in the study group was 92.9%, compared to 73.2% in the control group, with the study group showing significantly higher rates (P < .05). There was no significant difference in pulmonary function index levels between the 2 groups before drug intervention (P > .05), but levels of all indexes improved after treatment. The levels of FEV1, FVC, peak expiratory flow, and FEV1/FVC in the study group were higher than those in the control group (P < .05). The incidence of adverse reactions such as nausea, rash, and headache was 25.0% in the study group and 23.2% in the control group, with no significant difference between the 2 groups (P > .05). Before treatment, there was no significant difference in the levels of inflammatory factors between the 2 groups (P > .05). After treatment, levels of TNF-α, IL-6, and IgE improved in both groups, with the study group showing lower levels than the control group (P < .05). Montelukast sodium combined with budesonide in the treatment of children with CVA enhances the treatment effect, improves pulmonary function, inhibits inflammatory factors, and does not increase adverse drug reactions, making it a valuable treatment option.