The invention provides a pharmaceutical preparation for treating liver and gallbladder damp-heat and a preparation method thereof. The preparation method comprises the following steps: mixing potentilla anserine, vervain, lalang grass rhizome, radix puerariae, longhairy antenoron herb, fiveleaf akebia fruit, stir-fried radix paeoniae rubra, indigo naturalis, spora lygodii, herba epimedii, radix bupleuri, bran stir-fried rhizoma atractylodis, lavender, endive and liquorice roots in a specific proportion, and carrying out water decoction extraction and filtration to obtain an extracting solutionand filter residues; then crushing fried coix seeds and purple rice to obtain mixed powder, preparing a fermentation culture medium from the mixed powder and the filter residues, inoculating candidautilis, bacillus subtilis and geotrichum candidum, performing fermentation and centrifugation, taking a supernate to obtain fermentation liquor, and mixing the fermentation liquor with the extractingsolution to obtain mixed powder; adding the mixed powder into a hydroxyethyl cellulose-silkworm silk fibroin mixed solution, and carrying out uniform ultrasonic oscillation and drying to obtain an inclusion compound; and finally, mixing the inclusion compound with auxiliary materials to prepare capsules. Compared with a common traditional Chinese medicine decoction, the capsule is convenient to take and has a good treatment effect on liver and gallbladder damp-heat.