The invention discloses a traditional Chinese medicine preparation used for treating fatty liver, and a preparation method thereof, and belongs to the technical field of fatty liver drug preparation. The traditional Chinese medicine preparation comprises following raw materials: radix polygoni multiflori, herba visci, cortex fraxini, radix stemonae, origanum vulgare, semen plantaginis, rhizome chuanxiong, herba aristolochiae, astragalus membranaceus, radix saposhnikoviae, radix angelicae, radix puerariae, herba taraxaci, lobelia chinensis, herba siegesbeckiae, flos lonicerae, cortex eucommiae, burdock root, bulbus lilii, lumbricus, herba houttuyniae, rhizoma acori graminei, processed radix aconiti kusnezoffii, Japanese buttercup herb, and resina ferulae. The traditional Chinese medicine preparation is prepared via following steps: medicine liquid extraction, condensation, drying, smashing, sieving, and disinfection The effects of a plurality of traditional Chinese medicines are combined; the traditional Chinese medicine preparation is capable of protecting liver, inhibiting bacteria and diminishing inflammation, and improving body immunity; absorption effect of the traditional Chinese medicine preparation by human body is excellent; human body immunity and stress resistance can be improved; curative ratio of fatty liver is increased; and effective rate is 99% or higher.