The invention discloses a traditional Chinese medicine soaking and washing liquid used for treating neonatal jaundice. Neonatal jaundice is caused by intrinsic dampness evil in the spleen and stomach. The liver fails to maintain the normal flow of qi, and the bile spills, such that a yellowing phenomenon appears. Aiming at the problem, the medicine liquid provided by the invention adopts traditional Chinese medicines with heat clearing, dampness eliminating, liver soothing, qi regulating, stagnation eliminating, stasis removing, blood activating, and blood stasis removing functions, such as alsine-like evolvulus herb, common goldenrod herb, society finch, fodder vetch herb, amur corktree bark, Asiatic plantain seed, snowbelleaf tickclover herb, trogopterus dung, polygonum cuspidatum, Chinese thorowax root, and immature tangerine fruit. The traditional Chinese medicines are prepared into the soaking and washing liquid, and the liquid is used for soaking and washing neonate body surface. As a result of clinical experiments, a markedly effective rate and a total effective rate respectively reach 64.3% and 97.1%. The rates are substantially better than a control group. With the liquid, the time spent for reducing serum bilirubin to a normal value is substantially shorter than that of the control group, and sleep quality is better than that of the control group. The treatment method is simple, and the cost is low. Therefore, the traditional Chinese medicine soaking and washing liquid is worthy of clinical application.