The invention discloses a traditional Chinese medicine composition for treating systemic lupus erythematosus, which comprises the following components by weight: 12-30 parts of buffalo horns, 9-15 parts of radix rehmanniae, 10-30 parts of hedyotis diffusa, 5-15 parts of radix rhapontici, 6-12 parts of cortex moutan, 6-12 parts of red peony roots, 5-10 parts of mix-fried muscardine silkworm, 3-10 parts of radix gentianae macrophyllae, 6-15 parts of caulis sinomenii, 9-15 parts of processed rhizoma polygonati, 6-12 parts of stir-fried atractylodes, 3-9 parts of tangerine peel. The present invention also discloses a preparation method of the traditional Chinese medicine composition. The traditional Chinese medicine composition of the invention has the efficacy of clearing heat and removing toxic substances, cooling blood and dissipating stasis, nourishing yin, promoting body resistance and eliminating pathogenic factors, can relieve the symptoms of fever (with a body temperature of below 38 DEG C), skin lesions, arthralgia, alopecia, Raynaud's phenomenon, photosensitivity, irregular menstruation, xerostomia, night sweat, and the like for lupus erythematosus patients, and can restore results of blood routine examination and main immunological indexes.