The invention discloses a Chinese pharmaceutical composition for treating hepatitis and fatty liver, which comprises cornus officinalis, oriental wormwood, cape jasmine, baikal skullcap root, plantain seeds, clematis stem, polyporus umbellatus, poria cocos, rush pith, curcuma aromatica, licorice root, cyperus tuber, dandelion, white atractylodes rhizome, magnolia bark, Bupleurum root, chicken's gizzard-skin, green tangerine orange peel, banksia rose, malt, isatic root, haw, turtle shell, burred tuber, Loranthus mulberry mistletoe, talcum powder, bitter orange, zedoary, fleece-flower root, root of herbaceous peony, medicated leaven, Chinese angelica root, rhubarb horsetails.