The invention discloses a composition for preventing hair loss and promoting hair growth and a preparation method of the composition. The composition for preventing hair loss and promoting hair growthcomprises the following materials: ethanol extract of traditional Chinese medicine, pullulan, vitamin E, hydroxypropyl methylcellulose, camphor, cocamidopropyl betaine, propylene glycol, avocado oil,hydrolyzed wheat protein, methyl isothiazolinone, menthol, preservative, L-cystine, zinc gluconate, copalic acid, xylan, water-soluble pectin and deionized water, wherein the composition for preventing hair loss and hair growth is prepared by steps of mixing, stirring and the like. According to the invention, copalic acid, xylan and water-soluble pectin are used as a reinforcing system to improvea hair loss preventing rate and a hair growth promoting rate of the composition for preventing hair loss and promoting hair growth.