The invention relates to traditional Chinese medicine powder for treating diabetes. The traditional Chinese medicine powder is prepared by the following steps of mixing taken raw materials of 20g of radix pueraiae, 30g of bitter gourd, 20g of astragalus membranaceus, 40g of rhizoma anemarrhenae, 30g of glossy privet fruits, 20g of rhizoma alismatis, 10g of concha haliotidis and 30g of schisandra chinensis together, grinding the raw materials into powder, sieving until the particle sizes are 180 meshes to prepare the traditional Chinese medicine powder; and the traditional Chinese medicine powder is filled to form a capsule. The traditional Chinese medicine powder is capable of regulating five organs of a human body, dredging blood circulation, mobilizing the activity of multiple enzymes of the human body, slowly restoring the pancreas islet function, gradually reducing various complications of the diabetes until the complications disappear, activating islet cells and thoroughly eliminating dependence on the Western medicine or insulin, so that a patient recovers health, gets rid of disturbance of diabetes and the patient with diabetes gets well. The traditional Chinese medicine powder is reasonable in composition, reliable in curative effect, short in treatment course, fast acting, high in recovery rate, low in cost, free of adverse reaction and free of toxic or side effect; and clinic treatment is carried out on thousands of patients, the effective rate can reach over 96%, the curative effect is very satisfactory and the recovery rate reaches over 80%.