This paper is to reveal the inconsistency of five-phase mutual generation and restriction theory and explore the correct application method of the theory. Deep relationship among five-phase mutual generation and restriction is analyzed using Godel’s incomplete theorem. Then Bohr complementary principle is adopted to explore the correct application method of five-phase mutual generation and restriction. This paper shows that the emergence of the mutual generation of five phases theory makes the mutual restriction of five phases become relatively complete. While this relative completeness leads to inconsistency of five-phase mutual generation and restriction. Thus the two theories cannot be applied under the same condition at the same time. Nevertheless

neither of the two theories could be given up. A complete five phases system could only be constitute if the two theories are applied complementarily.