The invention relates to a traditional Chinese medicine for treating bone fracture, which is prepared from the following traditional Chinese medicine components by weight: 50-70g of pseugo-ginseng, 30-50g of angelica sinensis, 80-100g of nux vomic, 20-30g of safflower, 25-30g of dragon's blood, 10-25g of mastic, 25-30g of myrrh, 20-30g of cortex moutan, 25-30g of Chinese pangolin, 30-40g of rheumofficinale, 40-50g of radix paeoniae rubra, 30-40g of sappanwood, 40-50g of honeysuckle, 20-30g peach kernel, 30-40g of fraxinus bungeana, 30-40g of auranti fructus, 20-30g of cassia twig, 30-40g of radix achyranthis bidentatae, 30-40g of zinnober and 10-20g of borneolum syntheticum. The preparation method comprises the steps of soaking the nux vomic in clear water for five days, wherein water is changed once every day during the five days; then changing water for carrying out three times of decoction, fishing out and drying, dehairing, grinding into smalls together with other traditional Chinese medicines; and finally adding the zinnober and the borneolum syntheticum. An adult administrates 4g of the traditional Chinese medicine each time and twice each day, the amount for the children and the weak is reduced as required, yellow wine is used as a guiding drug, and a curative course lasts for one month. The traditional Chinese medicine can dispel swelling and stop pain, can take effect fast, and is obvious in reunion of iliacus muscle, and short in curative period.