The invention relates to a medicinal pillow capable of improving sleep effect, improving sleep quality, relieving nerves and resting to attain mental tranquility. The main medicinal components of the medicinal pillow comprise eucommia bark, combined spicebush root, platycodon root, cedar seed, curcuma, large-headed atractylodes, mint, Szechuan lovage rhizome, immature bitter orange, whole Chinese angelica, notopterygium root, divaricate saposhnikovia root, white peony root, high benzene, fine-leaf schizonepeta herb, liquorice root, acanthopanax bark, elm cake, chrysanthemum, flower of silktree, cassia bark, honeylocust fruit, processed pinellia, zanthoxylum, alpinia fruit, white sliced aconite, obscured homalomena rhizome, white fructus tribuli, processed aconite main tuber, tuber of multiflower knotweed, magnolia flower, evodia fruit, asarum, eclipta, tuber fleeceflower stem, angelica dahurica, thorn seed, desertliving cistanche, schisandra and raspberry. The Chinese medicinal herbs are accurately processed and baked according to a formula, fully finely crushed and filled into silk packages to form medicinal bags, wherein the silk fabric can allow the Chinese medicinal powder to be well diffused, and the diffused powder is easily contacted by the human body and absorbed by the respiratory tract; and then the medicinal bags are put into various pillows easily accepted by the markets so as to complete the manufacture of the functional medicinal pillow.