The invention discloses a Chinese medicinal composition, particularly a Chinese medicinal composition for treating femoral head necrosis and a preparation method thereof. The Chinese medicinal composition for treating the femoral head necrosis is characterized by comprising the following components: Chinese angelica, white paeony root, red paeony root, Szechuan lovage rhizome, manchurian wildginger, himalayan teasel root, eucommia bark, fortune's drynaria rhizome, twotooth achyranthes root, safflower, peach seed, suberect spatholobus stem, root of red-rooted salvia, rhizoma corydalis, worm, garden balsam stem, common clubmoss herb, pangolin scales, zedoary, dried rehmannia root, frank incense, myrrh, largehead atractylodes rhizome, astragalus, cuttlebone, trogopterus dung, sappan wood, dragon's blood and cornu cervi pantotrichum. The Chinese medicinal composition is specially used for treating femoral head avascular necrosis, femoral head damage, hip joint peripheral damage and necrosis, has an obvious curative effect and high medicinal properties, is used for treating both principal and secondary aspects of diseases, is safe and reliable, and has good effects of eliminating stasis and promoting tissue regeneration, cooling blood to stop bleeding, removing obstruction, smoothing circulation and stopping pain, easing joint movement, diminishing swelling and relieving pain, promoting tissue regeneration, promoting healing, and reuniting muscles and bones. By the Chinese medicinal composition, 860 patients are treated totally, and the total effective rate is 99 percent.