The invention discloses a Chinese herba preparation for treating the diabetes and a preparation method of the Chinese herba preparation. The Chinese herba preparation comprises the following raw medicinal materials: cornus officinalis, radix rehmanniae praeparata, rhizoma anemarrhenae, radix notoginseng, fructus lycii, radix salviae miltiorrhizae, radix angelicae sinensis, radix polygonati officinalis, rhizoma polygonati, radix ophiopogonis, sweet potato, radix asparagi, rhizoma dioscoreae, watermelon seed, rhizoma coptidis, honey-fried licorice root, lotus leaf, schisandra chinensis, duckweed, cortex lycii radicis, clam meal, pollen pini, mulberry, balsam pear, cortex eucommiae, rhodiola rosea and fructus arctii. The Chinese herba preparation realizes the scientific compatibility according to the theory of differential treatment with herbal medicines, has the effects of reducing blood sugar, clearing away heat and toxic materials, enriching yin and nourishing kidney, and conditioning deficiency of spleen and stomach, is high in cure rate, short in course of treatment, low in recurrence rate, and few toxic and side effects, generates relatively good effects on reducing the diabetes and the complications due to the diabetes, and is worth popularization and application.