The invention discloses a Chinese medicine composite for treating chronic atrophic gastritis and a preparation method thereof. The Chinese medicine composite mainly comprises the following active pharmaceutical ingredients: jobstears seed, rhizoma dioscoreae, pericarpium citri reticulatae, fructus aurantii immaturus, radix aristolochiae, ligusticum chuanxiong, Lignum aquilariae resinatum, rhizoma corydalis, stir-fried frankincense, stir-fried myrrh, pericarpium citri reticulatae viride, radix scrophulariae, rhizoma cyperi, styrax, radix trichosanthis, radix rehmanniae preparata, peach seed, safflower, medicated leaven, fructus setariae germinatus, dandelion, honeysuckle flower, rhizoma coptidis, radix et rhizoma rhei, radish seed, rhizoma curcumae longae, grassleaf sweetflag rhizome, cortex magnoliae officinalis and tuckahoe, and the like. The Chinese medicine composite can be prepared to be any common oral preparation according to the conventional Chinese medicine preparation method. The Chinese medicine composite can obviously improve abdominal distention that is manifest due to more food intake, tastelessness and insipidity, vague pain and complaint in the gastric cavity, lassitude, athrepsy, anorexia, anaemia and the like and the complications including gastric bleeding, gastrelcosis, anaemia and gastric cancer, and the like, which has definite clinical effect, obvious curative effect and fast desired effect.