The invention belongs to the field of traditional Chinese medicine, and relates to a traditional Chinese medicine preparation used for treating acute bronchitis, chronic bronchitis and bronchial asthma. The invention also relates to a preparation method of the traditional Chinese medicine preparation. The preparation is an oral preparation prepared from raw medicines of lumbricus, dried ginger, baikal skullcap root and rhizoma arisaematis (prepared), which serve as active components of the preparation. The preparation has functions of heat clearing, asthma calming, phlegm dissipating and cough relieving. The compound preparation is prepared with a refined prescription, and accords with a traditional Chinese medical principle that the treatment is determined based on differentiation of symptoms and signs. The preparation has functions of inflammation resisting, infection resisting, phlegm dissipating, spasm relieving, asthma calming, allergy resisting and immunity enhancing. Therefore,the preparation accords with an acute and chronic bronchitis treating principle in modern medical science. The medicinal preparation provided by the invention has advantages of stable quality, small safety side-effect in clinic application, excellent curative effect, and low cost. Also, the preparation is easy to store and to apply.