The invention discloses a Chinese herbal medicine composition for curing diabetes, comprising aweto, wolfberry bark, scutellaria, trichosanthin, liriope, kudzu, phellodendron bark, anemarrhena, root of rehmannia, xuanshen, schisandra, cassia bark, astragalus, Chinese yam, lanceolata, malt, medicated leaven, coix seed, crab apple and tartarian buckwheat root and rhizome. The preparation method of the Chinese herbal medicine composition comprises the following steps: wolfberry bark, scutellaria and liriope are boiled, immersed with trichosanthin and then dried; phellodendron bark, anemarrhena and root of rehmannia are boiled, immersed with kudzu and then dried; malt, medicated leaven and crab apple are boiled, evenly immersed with lanceolata and then dried; tartarian buckwheat root and rhizome, coix seed, cassia bark and aweto are dried; then, the dried trichosanthin, kudzu, Chinese yam and lanceolata are crushed and added to starch to make into pills with water. The Chinese herbal medicine composition can reinforce the sensibility of insulin, can obviously reduce lipid, regulate lipid and reduce blood viscosity, and has the advantages of simple making method, fast effects and stable therapeutic effects.