The invention discloses a blood-activating, stasis-removing, lipid-lowering and fat-reducing capsule and a preparation method thereof. The capsule is prepared from the following raw materials in parts by weight: 24-26 parts of pseudo-ginseng, 18-27 parts of rheum officinale, 16-22 parts of achyranthes bidentata, 14-18 parts of pheretima, 15-20 parts of stir-baked squama manitis, 12-16 parts of liquorice, 22-28 parts of calendula officinalis, 10-15 parts of evening primrose, 17-23 parts of cinnamon, 15-20 parts of tea pollen and 10-15 parts of grape pip powder. By scientifically combining nine traditional Chinese medicines pseudo-ginseng, rheum officinale, achyranthes bidentata, pheretima, stir-baked squama manitis, liquorice, calendula officinalis, evening primrose and cinnamon with tea pollen and grape pip powder, the raw materials together play roles of activating blood and removing stasis, tonifying middle-Jiao and Qi, activating yang and reducing turbidity, relieving pain and promoting menstruational flow, lowering lipid and reducing weight, maintaining beauty and keeping young and quieting the heart and soothing the nerve. The capsule is used for treating diseases such as phlegm evil and rheumatism induced by qi and blood, chest stuffiness and pains, heumatism, palpitation and insomnia, epigastric fullness and weakness, obesity, hyperlipidemia, lusterless complexion, stains and the like and is complete in efficacy, remarkable in curative effect, short in treatment course, free of side effects and safe to use.