The invention relates to a traditional Chinese medicine preparation for treating senile dementia, encephalatrophy and dysgnosia. The traditional Chinese medicine preparation is prepared from the following substances in parts by weight: pilos antler, saffron crocus, astragalus membranaceus, herba cistanche, earthworms, turtle paste, hirudo, golden cypress, semen cuscutae, morinda officinalis, salvia miltiorrhiza, ligusticum wallichii, tail of Chinese angelica root, peach kernels, radix paeoniae rubra, dipsacaceae, radix achyranthis bidentatae, rhodiola rosea, polygala tenuifolia, radix angelicae, notoginseng, safflower carthamus, caulis spatholobi, rhizoma drynariae, epimedium and rehmannia glutinosa. According to the traditional Chinese medicine preparation, the cognition impairment can be improved, the cerebral atrophy can be delayed, the memory can be increased, and an obvious effect of preventing and treating the senile dementia is achieved.