The invention discloses traditional Chinese medicine decoction piece screening and packaging equipment and a method thereof. The traditional Chinese medicine decoction piece screening and packaging equipment comprises a base, a supporting rod and a fixed frame; the fixed frame is installed on the base through the supporting rod; a decoction piece screening assembly is arranged in the fixed frame;the decoction piece screening assembly comprises a screening frame, a chute, a guide rod, a first screening plate, a second screening plate, a first discharging passage, a second discharging passage,a pushing rod, a connecting rod, a rotary table, a telescopic rod, a rotating shaft and a driving motor; and by arranging the decoction piece screening assembly, when traditional Chinese medicine decoction pieces are screened, the cut decoction pieces are placed into the screening frame, the driving motor works, the rotary table is driven by the rotating shaft to rotate, then the screening frame is driven by the connecting rod and the pushing rod to swing left and right along the chute and the guide rod, the decoction pieces of which sizes are larger than a normal decoction piece size and cutting offcuts are discharged through the first discharging passage, and decoction pieces with the normal sizes and sweeps fall off from the first screening plate.