The invention relates to a traditional Chinese medicine composition and a preparation method thereof. The traditional Chinese medicine composition is mainly prepared from the following components: gastrodia elata, tendril-leaved fritillary bulb, thunberg fritillary bulb, ginseng, salviae miltiorrhizae, radix scrophulariae, radix sophorae flavescentis, the roots of straight ladybell, radix stemonae, ligusticum wallichii, red peony roots, angelica sinensis, dried radix rehmanniae, radix rehmanniae preparata, saffron crocus, peach kernels, radix ophiopogonis, schisandra chinensis, American ginseng, astragalus, kudzuvine roots, leeches, scorpio, stiff silkworms, earthworms, rhizoma acori graminei, irkutsk anemone rhizome, apricots, bunge cherry seeds, erodium stephanianum willd, uncaria, semen lepidii, penthorum chinense pursh, poria cocos, poria with hostwood, martin fig roots and stems, radix aconiti preparata, rhizome arisaematis, arisaema cum bile, semen boitae, turtle shells, manis pentadactyla, tortoise shells, zaocys dhumnade, agilawood, kadsura coccinea, centipedes, rhizoma sparganii, curcuma zedoary, ground beetles, cephalotaxus fortune, rhizoma curculiginis, hairyvein agrimony, herba epimedii and the like. The preparation method is simple in process, and the prepared traditional Chinese medicine composition is convenient to take and has obvious effects for treating serious diseases such as hydrops and tumors of the lung and heart and cerebral vessels.