The invention provides a traditional Chinese medicine for treating yin deficiency and damp heat type acute cystitis and a preparation method thereof. The traditional Chinese medicine comprises the following raw medicinal materials of Chinese mesona herb, inula herb, remote lemongrass herb, wood sorrel, morinda officinalis, tetrastigma planicaule, cinnamomum wilsonii gamble, jasminum urophyllum, delphinium, Pleurospermum riuulorum, penthorum chinense, largeflowered lychnis herb, zebrina pendula, dryopteris sophoroides, Clematis buchananiana, Himalayan mirabilis, plicate twayblade and all-grass of Ames Vanda. The traditional Chinese medicine has the advantages that the effect of treating the yin deficiency and damp heat type acute cystitis is obvious, the toxic and side effect is little, and the adverse reaction rate is low.