The invention discloses an organic fertilizer using Chinese medicine residue as raw material and a production process thereof, which consists of the following weight components in parts by weight: 500-600 parts of Chinese medicine residue, 60-80 parts of crop straw, 40-50 parts of rice husk, 30-40 parts of dry pine needles, 20-30 parts of peat soil, 20-30 parts of tea tree ash, 10-15 parts of earthworm cast extract liquid fertilizer, 10-15 parts of microbial inoculums, 10-15 parts of vermiculite, 8-10 parts of bentonite. The organic fertilizer uses Chinese medicine residue as raw material andbecause the Chinese medicine residue as raw material contains a large amount of crude fiber, crude fat, starch, crude polysaccharide, crude protein, amino acid, alkaloid, trace element and the like, the organic fertilizer is light in weight, good in aeration, free of pathogenic bacteria, and the content of heavy metals is far lower than the allowable content limit as fertilizer or matrix. It is ahigh-quality organic fertilizer and light matrix raw material. At the same time, it can improve the permeability of soil, improve the quality of soil, and is convenient to use.