The invention discloses a traditional Chinese medicine compound formulation for curing nephritis and a preparation method thereof. The formulation includes tablets, capsules, granules, soft capsules, pills and mixtures, etc., and comprises twelve traditional Chinese medicines of common cephalanoplos herb, milk veteh, radix rehmanniae recen, fiveleaf akebia, motherwort, corn stigma, lophatherum gracile, fried cattail pollen, nodus nelumbinis rhizomatis, angelica, gardenia and broiled liquorice. Traditional Chinese medicines are mixed according to the weight ratio of 60 to 100 shares of common cephalanoplos herb, 60 to 100 shares of milk veteh, 30 to 50 shares of radix rehmanniae recen, 15 to 25 shares of fiveleaf akebia, 30 to 50 shares of motherwort, 8 to 12 shares of corn stigma, 15 to 25 shares of lophatherum gracile portions, 8 to 12 shares of fried cattail pollen, 15 to 25 shares of nodus nelumbinis rhizomatis, 30 to 50 shares of angelica, 15 to 25 shares of gardenia and 15 to 25 shares of broiled liquorice. The traditional Chinese medicine compound formulation has the functions for removing pathogenic heat from blood, inducing diuresis to reduce edema and nourishing kidney. The formulation can be used for curing the symptoms such as acute nephritis hydrops and chronic nephritis hydrops, hematuria and proteinuria, etc. caused by accumulation of damp heat. The traditional Chinese medicine compound formulation takes optimized common traditional Chinese medicines as raw materials, has simple and easily controllable preparation technology, high content of effective components, short curative period of treatment and rapid effect, is based on the principle of curing the root and addressing both the symptoms and the root causes, ensures that the diseases are not easy to recur and has evident effect.