The invention provides a Chinese medicine residue organic fertilizer. Wastes after extraction of Chinese traditional medicines can be fully utilized, utilization of waste materials is realized, and a bactericidal and insect disease preventing organic fertilizer full of nutritional ingredients is also provided for agricultural production. The Chinese medicine residue organic fertilizer is prepared by fermenting Chinese medicine residue, excrement of animals, solid waste, bacillus subtilis and EM. The Chinese medicine residue organic fertilizer has the advantages that the Chinese medicine residue, excrement of animals and solid waste are mixed, biological fermentation bacteria are added for carrying out rapid fermentation, organic fertilizer is processed, waste materials are changed into things of value, harm is turned into good, the problem of treatment of abandoned herb residue produced by a Chinese medicine factory is solved, and waste treatment cost is also greatly reduced, so that a win-win situation of environmental protection and economic development is realized. By adopting the organic fertilizer made from the Chinese medicine residue, soil can be effectively improved, crop pest also can be effectively prevented, and quality, yield and safety of crops are improved.