The invention relates to a formulation of a traditional Chinese drug capsule, and a preparation method thereof, especially relates to a formulation of a capsule for treating brown pigment spot, and a preparation method thereof. The formulation comprises: 30 g of szechwan lovage rhizome, 30 g of rehmannia glutinosa, 30 g of dioscorea opposite, 20 g of cornel, 20 g of balloonflower root, 20 g of divaricate saposhnikovia, 20 g of dodder, 20 g of desertliving cistanche herb, 15 g of tree peony bark, 15 g of peach seed, 10 g of cortex moutan and 10 g of stiff silkworm. The preparation method comprises: 1) respectively weighing each traditional Chinese drug material in the formulation according to the amount in the formulation, then respectively carrying out washing, drying and crushing into particles having a particle size of 120 meshes, followed by carrying out screening through a sieve having 100 meshes to provide a spare use; 2) completely mixing the resulting medicine powders from the step 1); 3) packing the mixed medicine powders into the capsules having a defined weight specification. With the present invention, kidney reinforcing, blood activating, collaterals dredging and pot removing are adopted for essentially eliminating the source of the brown pigment spot generating; the capsule is used through the combination with the corresponding mask to perform a double treatment comprising the internal treatment and the external treatment so as to provide a more rapid effect.