The invention discloses a traditional Chinese medicine used for treating uremia and a preparation method thereof. The traditional Chinese medicine used for treating uremia comprises following raw materials, by weight:30 to 60 portions of fresh radix astragali, 10 to 30 portions of poria cocos peel, 10 to 30 portions of pericarpium arecae, 15 to 40 portions of exocarpium benincasae, 15 to 40 portions of semen plantaginis, 10 to 30 portions of fried fructus aurantii, 10 to 30 portions of roasted rhizoma atractylodis macrocephalae, 15 to 40 portions of rehmannia?root, 10 to 30 portions of cortex mori, 15 to 40 portions of cordate houttuynia, 15 to 40 portions of oldenlandia diffusa, 30 to 60 portions of serissa serissoides, 15 to 40 portions of lungwortlike lobaria herb, 30 to 60 portions of raw semen coicis, 10 to 30 portions of radix dipsaci, 10 to 30 portions of radix achyranthis bidentatae, 10 to 30 portions of yam rhizome, 10 to 30 portions of herba taxilli and 10 to 30 portions of rheum officinale. The results of more than 175 clinical experiments show that: effective rate of the traditional Chinese medicine in treatment of uremia reaches to 70%, and 30% of the patients treated by using the traditional Chinese medicine are on the mend obviously. No toxic or side effect is caused by the traditional Chinese medicine, and the traditional Chinese medicine is capable of improving uremia significantly. In addition, the traditional Chinese medicine is low in cost, is easy to prepare, can be popularized in the folk, and is capable of reducing medicine burden of patients.