The invention discloses a traditional Chinese medicine composition for treating an autoimmune liver disease, and a preparation method thereof. The traditional Chinese medicine composition comprises the following medicinal raw materials in parts by weight: 15-30 parts of astragalus membranaceus, 10-30 parts of cooked rhubarb, 10-30 parts of glossy privet fruit, 10-30 parts of radix curcumae, 10-30 parts of large-leaved gentian, 10-30 parts of caulis spatholobi, 10-30 parts of caulis sinomenii, 10-30 parts of radix rubiae, 10-30 parts of sedum sarmentosum and 5-15 parts of liquorice. The traditional Chinese medicine has the effects of strengthening body resistance, detoxifying, dispersing stagnated liver qi for promoting bile flow, promoting blood circulation to remove blood stasis, expelling wind and removing dampness; the main treatment range comprises autoimmune hepatitis, primary biliary cirrhosis, primary sclerosing cholangitis, and overlap syndrome of any two in the three diseases; and the traditional Chinese medicine composition has the treatment effects of restoring immune balance, inhibiting liver inflammation, protecting liver function, resisting hepatic fibrosis, improving clinical symptoms, improving survival quality and the like, and has high safety.