The invention discloses a traditional Chinese medicine composition for treating blood-deficiency Yang-floating type insomnia and a preparation method thereof. The traditional Chinese medicine composition is composed of the following raw materials in parts by weight: 25-30 parts of spina date seed, 4-6 parts of seman platycladi, 4-6 parts of Chinese magnoliavine fruit, 10-12 parts of os draconis, 10-12 parts of oyster, 4-6 parts of mother of pearl, 4-6 parts of rhizoma anemarrhenae, 4-6 parts of ligusticum chuanxiong, 10-12 parts of poria cocos, and 2-4 parts of licorice. The preparation method comprises the steps: smashing the raw materials into coarse powders; extracting volatile oil from ligusticum chuanxiong, spina date seed and seman platycladi, carrying out inclusion on the volatile oil, taking the coarse powders of mother of pearl, os draconis and oyster, carrying out voltage pulse-semi bionic extraction, and extracting the ligusticum chuanxiong, spina date seed and seman platycladi drug dregs having the volatile oil extracted and rhizoma anemarrhenae, liquorice, poria cocos and Chinese magnoliavine fruit by a high-voltage pulse extraction device; concentrating the extract liquid into a thick paste; mixing the volatile oil and the thick paste to obtain the composition. The traditional Chinese medicine composition has the beneficial effects that the traditional Chinese medicine composition achieves the purpose of radical treatment on insomnia, and neither has western medicine's shortcomings not causes iatrogenic diseases. Through the use of the preparation method combining the supercritical carbon dioxide fluid extraction method with high-voltage pulse-semi bionic extraction, the medicine clinical curative effect is improved.