The invention provides a Chinese medicine composition as well as a preparation method and application thereof. The Chinese medicine composition is a medicament which is prepared from the following raw materials in parts by weight: 35-45 parts of astragalus mongholicus, 6-9 parts of Chinese angelica, 35-45 parts of prepared rehmannia roots, 5-10 parts of Chinese herbaceous peony, 2-8 parts of ligusticum, and 5-10 parts of lithospermum. The preparation method of the Chinese medicine composition comprises the following steps: weighing the raw materials to be smashed, and extracting percolate with ethanol solutions of different concentrations; collecting the percolate, reducing the pressure, concentrating the percolate into extract after the ethanol solutions are recovered, carrying out the chromatography, the separation and the purification with macroreticular resin PHD 100, collecting and compounding eluant, filtering the eluant, adding cyclodextrin, Opadry and colloidal silicon dioxide into the filtrate to be sufficiently and uniformly mixed, carrying out spray drying to obtain dry paste powder, adding glyceryl behenate into the dry paste powder to be uniformly mixed, carrying out filling and polishing, and packaging the resultant with aluminium-plastic to obtain capsules. The Chinese medicine composition provided by the invention is used for treating qi and blood deficiency syndromes as well as alopecia caused by qi and blood deficiency syndromes or chemotherapies.