The invention discloses a whitening and moisturizing traditional Chinese medicine composition as well as a preparation method and application thereof. The composition is prepared from the following raw materials: red wine, a cherry plum peel extract, a cherry fruit extract, a cherry plum pit extract, rhizoma atractylodis macrocephalae, white poria, bletilla striata, bombyx batryticatus, radix paeoniae alba, cortex phellodendri, gallnut, fructus cnidii, semen coicis and salicylic acid. The mask has the effects of whitening, moisturizing and removing freckles, and does not have toxicity and photosensitivity. The preparation method of the composition comprises the following steps: grinding the bighead atractylodes rhizome, the white poria, the bletilla striata, the bombyx batryticatus, the radix paeoniae alba, the cortex phellodendri, the gallnut, the fructus cnidii and the semen coicis into powder to obtain traditional Chinese medicine powder; mixing and stirring the traditional Chinese medicine powder and red wine, then adding the cherry plum peel extract, the cherry fruit extract and the cherry plum pit extract, uniformly mixing and fermenting to obtain a fermented product, and finally adding salicylic acid. The fermented composition has stronger seepage force, and the moistening, repairing and soothing effects are improved. The composition is applied to facial masks, essence, toner and face cream.