The invention belongs to the field of traditional Chinese medicines, and relates to a medicine with effects of producing marrow and strengthening bone for treating alcoholic osteoporosis and a preparation method thereof. The medicine is prepared from the following raw materials in parts by weight: 2 to 8 parts of radix astragali seu hedysari, 2 to 8 parts of bighead atractylodes rhizome, 2 to 8 parts of Chinese angelica, 2 to 8 parts of radix puerariae, 2 to 8 parts of radix salviae miltiorrhizae, 2 to 8 parts of radix curcumae, 2 to 8 parts of radix achyranthis bidentatae, 1 to 4 parts of radix rehmanniae preparata, 1 to 4 parts of lumbricus, 1 to 4 parts of deer-horn glue, 1 to 4 parts of turtle shell, 1 to 4 parts of dragon bone, and 1 to 4 parts of concha ostreae. The medicine with effects of producing marrow and strengthening bone has the advantages that the bone density BMC is increased, and the content of bone mineral (BMD) is increased; various indexes of biological and mechanical properties of bone, such as maximum load, extreme strength, maximum flexibility, and elastic modulus, can be obviously improved, and the bone hardness and bone elasticity are improved.