The invention relates to a medicament for treating peripheral nerve of diabetes. A preparation method comprises the following steps of: mixing Chinese angelica, peach seed, safflower, astragalus, earthworm, leech, frankincense, myrrh, manchurian wildginger, suberect spatholobus stem, Japanese honeysuckle stem and clematis root, crushing to form medicinal powder, adding water for decocting, filtering, concentrating to form thick paste, drying, crushing to form medicinal powder, loading into capsules, and sterilizing and disinfecting to prepare capsule products. The medicament has the effects of clearing heat and detoxicating, promoting blood circulation, removing blood stasis, relaxing muscles, removing obstruction in channels and nourishing qi and blood, can be used for treating the peripheral nerve of diabetes, and has the characteristics of low cost and good curative effect; and the effective rate of clinical observation is 93 percent.