The invention relates to a traditional Chinese medicine composition for alleviating hangover and sobering, in particular to an oral liquid with the functions of hangover alleviating, sobering, thirst slaking, saliva produce helping, phlegm resolving and vomit stopping and a preparation method thereof. The oral liquid comprises, by weight, 60-100 parts of flos puerariae, 10-30 parts of semen hoveniae, 10-30 parts of poria cocos, 10-30 parts of hawthorn, 10-40 parts of momordica grosvenori, 0.1-1 part of aspartame containing phenylalanine, 3-12 parts of maltodextrin, and 50% of syrup which can be converted to 50-300 parts of saccharose, 0.1-2.4 parts of ascorbic acid, 2-10 parts of citric acid, and 0.1-0.3 part of polylysine. The preparation method comprises the steps of raw material preparing, water extraction and alcohol precipitation treating, freeze drying, vacuum drying, bending, high pressure steam sterilizing and the like. According to the oral liquid with the functions of hangover alleviating and sobering and the preparation method thereof, the best ratio between raw materials and good odor and taste are obtained through sensory evaluation, and the pharmacodynamic test shows that the oral liquid has the functions of hangover preventing and alleviating. The oral liquid has the characteristics of being stale in efficacy, high in practicability, small in side effects, big in market potential, wide in range of target audience, and worth in popularizing.