The invention relates to the technical field of medicine, and discloses a traditional Chinese medicine composition for preparing an antidiabetic nephropathy product kidney-milkvetch root No.1 and a preparation method and application of the traditional Chinese medicine composition. The kidney-milkvetch root No.1 is prepared from milkvetch roots, prepared rehmannia roots, fructus corni, semen cuscutae, pollen typhae, radix salviae miltiorrhizae, ramuli euonymi, rhizoma coptidis, corn stigmas and radix achyranthis bidentatae; the effect of treating qi-yin deficiency blood stasis type diabetic nephropathy is significant, and the proteinuria content of an early-middle-stage diabetic nephropathy patient can be decreased; in the aspect of protecting the residual renal function, clinical random control study shows that the marked effective rate is 62.1%, the effective rate is 24.1%, and the total effective rate is 86.2%. The traditional Chinese medicine composition is wide in raw material source, low in cost, simple in preparation technology, high in yield and stable in property; a preparation prepared from the traditional Chinese medicine composition is stable in quality, capable of achieving easy and convenient quality control, low in production cost, capable of conveniently achieving industrialized production, safe, low in toxicity and convenient to use and provides a new medicine source and safe raw material for prevention, treatment and research of antidiabetic nephropathy and direct related diseases thereof.