The invention discloses a Chinese herba preparation capable of treating qi and blood deficiency osteoarthritis and a preparation method thereof. The Chinese herba preparation is prepared from following raw materials: semen brassicae, ternate buttercup root, cleisostoma scolopendrifolium, seaweed, sargentgloryvine stem, five-stamen plum, edible tulip, zaocys dhumnade, pawpaw, azedarach, berba aristolochiae mollissimae, caulis sinomenii, fructus liquidambaris, actinidia polygama, the bark of ash, ramulus mori, fissistigma oldhamii, herba siegesbeckiae, harlequin glorybower, bark of himalayan coralbean, kadsura pepper stem, physalis angulata, dioscorea nipponica, loofah sponge, japanese cinnamon fruit, cortex acanthopanacis, loranthus parasiticus, osprey bone, folium photiniae, fingered citron, rose, herba aristolochiae and fevervine. The Chinese herba preparation has the beneficial effects of reducing phlegm and dissipating stasis, dispelling dampness and dredging collaterals, is mainly used for treating qi and blood deficiency osteoarthritis, treats based on syndrome differentiation on the whole, directly aims at the nidus, has short course of treatment, and can improve the immunity of human body, after recovery, the osteoarthritis is difficult to relapse; the Chinese herba preparation has a simple preparation technology, has small toxic and side effects, is convenient to dose, and has low cost.