The invention discloses a traditional Chinese medicine preparation for treating xerophthalmia and a preparation method thereof, and belongs to the technical field of drugs for treating xerophthalmia. The traditional Chinese medicine preparation is prepared from the following raw materials in parts by weight: 8-15 parts of spica prunellae, 6-9 parts of cortex moutan, 3-6 parts of folium mori, 6-9 parts of rhizoma phragmitis, 5-12 parts of radix polygonati officinalis, 8-15 parts of radix clematidis, 6-9 parts of caulis lonicerae, 6-9 parts of radix achyranthis bidentatae, 3-6 parts of manis pentadactyla, 8-15 parts of fructus ligustri lucidi, 6-9 parts of equisetum hyemale, 6-9 parts of fructus tribuli, 5-12 parts of green tangerine peel, 6-9 parts of gardenia jasminoides, 6-9 parts of pogonatherum crinitum, 6-9 parts of black beans, 6-9 parts of rhizoma cimicifugae, 3-6 parts of periostracum cicada, 8-15 parts of fructus trichosanthis and 6-9 parts of edible amaranth. The traditional Chinese medicine preparation is scientific in compatibility, achieves the efficacies of clearing away heat and toxic materials, promoting blood circulation to remove blood stasis and invigorating qi and blood by soothing the liver, moistening the lung, invigorating the spleen and kidney, and dispelling pathogenic wind for improving eyesight, and can directly focus on the deepest point of the diseased part, besides as the liver is utilized to convey blood nutrient substances to the eyes, the kidney plays a decisive role in metabolism of body fluid, and the lung plays a decisive role in dispersing body fluid, the body fluid can be conveyed upwards to the eyeballs to moisten the eyeballs, therefore the curative effect is definite, no side effect is caused, and both the symptoms and the root causes are treated.