The invention relates to a traditional Chinese medicine, specifically to a traditional Chinese medicine for treating diabetes and preventing and treating diabetic complications. The traditional Chinese medicine is characterized by being prepared from the following medicinal materials (by mass): 30-50 parts of Radix Rehmanniae Preparata, 20-30 parts of Chinese yam, 20-30 parts of cornus officinalis, 15-20 parts of astragalus membranaceus, 10-15 parts of honeysuckle, 10-15 parts of cape jasmine, 15-20 parts of red sage root, 10-15 parts of radix scrophulariae, 15-20 parts of schisandra chinensis, 15-20 parts of ligustrum lucidum, 20-30 parts of radix ophiopogonis, 10-15 parts of reed rhizome and 10-15 parts of radix trichosanthis. The traditional Chinese medicine has effects of tonifying kidney and spleen, clearing heat and moistening lung, nourishing yin and increasing fluids, promoting blood circulation to remove blood stasis, conditioning five internal organs, recovering dysregulatedviscera function and improving reduced viscera function to fundamentally treat diabetes, and is suitable for treatment of diabetes and complications thereof. The traditional Chinese medicine is convenient and simple to take and has good effects. After a patient takes the medicine, blood sugar and urine sugar are effectively controlled, and energy, physical strength and other functions are recovered satisfactorily. The diabetes is effectively prevented and controlled through the comprehensive effects of various traditional Chinese medicines, and the medicine also can calm the liver, clear heat,harmonize blood, tonify qi, clear heat, moisten the lung, nourish yin, increase fluids and reinforce the kidney.