The invention discloses a traditional Chinese medicine preparation, and preparation and application thereof. The traditional Chinese medicine preparation is prepared from the following raw materials in proportion by mass: 10 to 30 parts of prepared rehmannia roots, 10 to 30 parts of radix rehmanniae, 3 to 6 parts of cortex cinnamomi, 10 to 20 parts of radix salviae miltiorrhizae, 10 to 20 parts of radix angelicae sinensis, 10 to 20 parts of seeds of Chinese dodder, 10 to 20 parts of fructus psoraleae, 10 to 20 parts of herba epimedii, 9 to 30 parts of radix pseudostellariae, 10 to 15 parts of radix polygoni multiflori preparata, 8 to 15 parts of radix paeoniae rubra, 9 to 15 parts of cortex moutan, 9 to 15 parts of poria cocos, 9 to 15 parts of bighead atractylodes rhizome, 15 to 30 parts of Chinese yam and 3 to 6 parts of liquorice roots. The traditional Chinese medicine preparation has the advantages that the bone marrow mesenchymal stem cell multiplication of an AA patient can be promoted; by activating an SDF-1/CXCR4-PI3K/AKT signal path, the aplastic anemia MSCs function restoration can be effectively promoted; the mRNA expression of MSCs VEGF, SDF-1, CXCR4 and Akt of mice can be effectively improved; the hemopoietic microenvironment can be improved.