The invention is suitable for the technical field of traditional Chinese medicine preparation, and provides a traditional Chinese medicine composition for treating bone ununion after a fracture operation. The traditional Chinese medicine composition is prepared from the following raw materials in parts by weight: 100-200 parts of dragon's blood, 50-120 parts of olibanum, 50-120 parts of myrrh, 50-120 parts of angelica sinensis, 50-150 parts of eupolyphaga, 50-150 parts of sappanwood, 50-150 parts of earthworms, 50-120 parts of dried radix rehmanniae, 50-100 parts of gastrodia elata, 100-150 parts of native copper, 50-80 parts of scorpio, 50-80 parts of sea horse, 50-80 parts of redsnake, 50-100 parts of radix aconiti, 50-80 parts of eucommia ulmoides, 50-80 parts of cassia twig, 50-80 parts of dipsacus asperoides, 50-80 parts of red peony roots, 20-80 parts of flos carthami, 20-60 parts of radix achyranthis bidentatae and 10-50 parts of divaricate saposhnikovia roots. The invention further relates to a preparation method of the composition. The composition is capable of benefiting the kidneys, replenishing the bone, dispelling toxins, dredging collaterals, quickly promoting callus growth and promoting fracture healing, and has good social benefits and economical benefits.