The invention discloses a traditional Chinese medicine composition for treating diabetes. The traditional Chinese medicine composition is prepared from the following medicinal materials: astragalus membranaceus, codonopsis, Indian buead, Chinese yam, black beans, ginseng, soroseris umbrellata, caudate sweetleaf flower, dwarf lilyturf tuber, mongolian snakegourd root, root of rehmannia, pulp of dogwood fruit, polygonatum sibiricum, Chinese magnoliavine fruit, yam rhizome, figwort root, prepared rhizome of rehmannia, palmleaf raspberry fruit, persimmon exocarp, coptis chinensis, lalang grass rhizome, Japanese honeysuckle stem, actinidia arguta, honeysuckle flower, weeping forsythiae capsule, heartleaf houttuynia herb, sharpleaf galangal fruit, gypsum, dendrobium, conic gymnadenia tuber, trillium tschonoskii maxim, gardenia fruit, white mulberry root-bark, barbary wolfberry fruit, rhizoma alismatis, stevia rebaudiana, fragrant solomonseal rhizome, flatstem milkvetch seed, corn silk, scorched hawthorn fruit, rhizoma atractylodis, largehead atractylodes rhizome, pinellia tuber, dried orange peel, officinal magnolia bark, silkworm chrysalis, hyacinth bean, round cardamom fruit, fructus amomi, pseudo-ginseng flower, earthworm, Chinese angelica, red paeony root, szechuan lovage rhizome, safflower, peach seed, rhubarb, cassia twig, compound of glauber-salt and liquorice and giant knotweed rhizome. Proved by clinical trials, the traditional Chinese medicine composition disclosed by the invention can be used for safely and effectively treating diabetes.