The invention belongs to the technical field of traditional Chinese medicines, and particularly discloses a traditional Chinese medicine composition for treating acute and chronic hepatitis B and a preparation method thereof. The traditional Chinese medicine composition for treating acute and chronic hepatitis B is prepared from the following active pharmaceutical ingredients: 60g of oriental wormwood, 60g of herba oldenlandiae, 60g of radix salviae miltiorrhizae, 45g of lysimachia, 45g of rhizoma alismatis, 45g of red paeoniam 36g of Baikal skullcap root, 36g of radix bupleuri, 30g of wrinkled gianthyssop, 30g of green tangerine orange peel, 30g of dried orange peel, 30g of giant knotweed, 50g of radix isatidis, 50g of taraxacum, 50g of asket fern, 50g of fleece-flower root, 50g of glabrous greenbrier rhizome, 50g of radix paeoniae alba, 50g of rhizoma atractylodis macrocephalae, 50g of angelica, 50g of radix astragali, 50g of charred hawthorn, 50g of medicated leaven, 50g of stringy stonecrop, 36g of rhubarb, 50g of lucid ganoderma, 56g of radix curcumae, 36g of rhizoma cyperi, 60g of schisandra fruit, 36g of dark plum, 48g of kuh-seng, 36g of costus root and 36g of gardenia. The invention has the advantages of scientific formula, fine prescription, excellent medicine, no rare or strong inhibited item, fixed prescription, high safety and reliability, quick effect taking and high curative effect; the traditional Chinese medicine composition is concentrated into pills, and thus, is convenient for preparation and taking; and the traditional Chinese medicine composition is convenient for people and beneficial to people, and can treat both the symptoms and root causes without relapse.