The invention discloses a new traditional Chinese medicine composition for treating nephrotic syndrome and a preparation method thereof. The traditional Chinese medicine composition mainly comprises the following Chinese medicinal herbs such as American ginseng, ginseng, codonopsis pilosula, unprocessed astragalus mongholicus, Chinese yam, turtle shell, tortoise plastron, cornu cervi degelatinatum, fruit of Chinese wolfberry, root of Chinese trichosanthes, fruit of Chinese magnoliavine, seed of Chinese dodder, herba cistanche, Chinese caterpillar fungus, prepared rehmannia root, polygonum multiflorum, fructus ligustri lucidi, dried orange peel, myristica fragrans, fructus amomi, semen euryales, mangnolia officinalis, fructus chebulae, fructus rosae laevigatae, fructus alpiniae oxyphyllae, oyster, drynaria rhizome, dogwood, root-bark of Chinese wolfberry, phellodendron, fructus gardenia, white atractylodes rhizome, lucid asparagus, ophiopogon japonicus, herba epimedii, rhizoma anemarrhenae, root of kudzu vine and the like. The traditional Chinese medicine composition can be prepared into any one common oral preparation according to a conventional traditional Chinese medicine preparation method. The invention can remarkably improve symptoms of proteinuria, hypoalbuminemia, hematuresis, generaldropsy, listlessness, poor physical strength, inappetence, insomnia and amnesia, hypomnesis and the like of the patients suffering from the nephrotic syndrome and has accurate clinical treatment effect, remarkable treatment effect and rapid effect taking. Because of being combined by basically adopting medicinal and edible medicines specified in National Formulary, the invention has the advantages of low cost, basically no toxic and side effects and the like.