The invention relates to a traditional Chinese medicinal composition for treating ganglion. The traditional Chinese medicinal composition comprises an externally applied medicine and an orally taken medicine. The medicines accord with the traditional Chinese medicine compatibility principle, and aim at fundamentally treating ganglion; the externally applied medicine is prepared from the following medicinal materials: natrii sulfas, radix platycodi, semen phaseoli, eggplant roots, caulis spatholobi, scandent schefflera stems and leaves, herb of white clover, leaves of vaccinium fragile, Chinese blister beetle, stems and leaves of peanut, root of bidentate achyranthes, eriocarpous glochidion leaves, root of Chinese trumpet creeper, all-grass of gentiana davidii, common goldenrod herb, glabrousleaf pittosporum leaves, potentilla freyniana root, Indian nightshade root and sesame oil, so that the efficacies of promoting blood circulation and removing stasis, relaxing tendon and activating collaterals, promoting blood and qi circulation and dredging collaterals, excluding mucus, eliminating cyst and inhibiting the cyst growth are achieved; the orally taken medicine is prepared from the following medicinal materials: cortex cinnamomi, safflower, borneolum syntheticum, honey, all-grass of Cardiospermum halicacabum, radix codonopsis, radix solani melongenae, herba violae, folium ginseng, glabrousleaf pittosporum leaves, and lotus plumule, so that the efficacies of clearing away heat and toxic materials, cooling blood and eliminating swelling, promoting the blood circulation and relaxing the muscles and tendons, as well as clearing away the heart-fire, relieving restlessness and dredging the main and collateral channels are achieved. Through the oral taking and the external application of the medicines, cyst is radically treated; the medicinal materials are mixed to accelerate the blood circulation, eliminate the thick mucus at the affected part, inhibit the cyst growth, and prevent the cyst relapse.