The invention discloses application of a traditional Chinese medicine composition in preparation of a medicine for treatment of diabetic retinopathy. The traditional Chinese medicine composition comprises the following components: rhizoma acori graminei, semen cassiae, cistanche, root of kudzu vine, feather cockscomb seed, radix codonopsis, fructus viticis, Chinese wolfberry, semen plantaginis, radix paeoniae alba, dogwood, licorice, dodder seed, rhizoma cimicifugae, hedge prinsepia nut, chrysanthemum, butterflybush flower, Rhizoma Chuanxiong, polygonati rhizoma processed with yellow wine, prepared rehmannia root, Phellodendron amurense and Radix Astragali. The traditional Chinese medicine composition has good effects on preventing and treating the diabetic retinopathy, and can significantly reduce the production of retinal microangioma of the diabetic retinopathy, and compared with commonly-used diabetic retinopathy therapeutic drug calcium dobesilate, the traditional Chinese medicinecomposition is more remarkable in curative effect.