The invention discloses a traditional Chinese medicine composition for treating viral hepatitis and a preparation method thereof. The traditional Chinese medicine composition is mainly composed of the following raw materials: populus nigra, pogonia japonica, erigeron annuus, flower of cycas revolute, root of homonoia riparia, dendrobenthamia japonica, root of unilocular crateva, schoepfia fragrans, root of hydrangea strigosa, pedicularis megalochila, sida mysorensis, horse bean, saus-surea peguensis, root and fruit of rubus foliolosus, meconopsis racemosa, oriental wormwood extract, and turmeric extract. The provided traditional Chinese medicine composition overcomes the shortages of conventional traditional Chinese medicine, a reasonable formula and extraction method are adopted, and the prepared oral preparation has the functions of clearing heat, removing toxicity, dispelling dampness, activating collaterals, eliminating inflammation, promoting urination, invigorating the spleen, tonifying the liver, warming the middle, and nourishing the body, can treat both the symptoms and roots, does not have any side or toxic effect, and will not cause pain to patients.