The invention discloses a traditional Chinese medicine composition used for moxibustion. The composition includes argy wormwood leaf, dahurian angelica root, Sichuan lovage rhizome, cassia bark, notopterygium root, purple common perilla, modified loess and modified graphene. A preparation method of the composition is also disclosed. The efficacy of improving blood circulation and dispersing stasis, reinforcing the primordial qi, stimulating metabolism, dredging the channel, regulating qi and blood, warming middle-jiao to dispel cold and relieving depression and dispersing stagnation can be achieved by adding the argy wormwood leaf, the dahurian angelica root, the Sichuan lovage rhizome, the cassia bark and the notopterygium root, so that human immunity can be enhanced; the effects of medicines can be fully achieved and used by adding the purple common perilla; through the addition of the modified loess and as the modified loess is better in mobility, more uniform and better in viscosity and adsorption, the active ingredients in each traditional Chinese medicine can be reserved; and through the addition of the modified graphene, and as the modified graphene has super large specificsurface areas, ultra-high drug loading can be realized through the super adsorption, so that active ingredients can be effectively adsorbed during storage and moxibustion, loss of efficacy can be prevented, and high medicine effects can be guaranteed.