The invention relates to a traditional Chinese medicine for treating lung diseases and a preparation method thereof. The traditional Chinese medicine comprises rose willow twigs, scandent hop, astragalus membranaceus, codonopsis pilosula, black nightshade morel, adonis amurensis, pericarpium juglandis, lily, dried Chinese dates, radices saussureae, radix pseudostellariae, oldenlandia diffusa and sculellaria barbata. The preparation method comprises the following steps of (1) weighing and decocting; (2) grinding; (3) mixing and drying; and (4) manufacturing a finished product. The traditional Chinese medicine for treating the lung diseases and the preparation method thereof has the advantages of reasonable proportion and simple preparation, can effectively treat lung cough, phlegm, asthma, pain, lobar pneumonia, pulmonary infection, bronchitis, obillness sputum, lung tumor, lung nodule, nausea, vomiting, headache, poor appetite, body weakness and other sequelae caused by radiotherapy and chemotherapy, and can convert lung bulbus allii into lung small sac and pulmonary nodule into calcification. The practicability and the market popularization value are very high.