The invention provides a medicine composition for treating encephaloma and cerebral concussion and a preparation method thereof, belongs to a medicine composition, and in particular relates to a medicine prepared by using plant traditional Chinese medicines as raw materials, and the preparation method thereof. Raw materials for preparing active ingredients of the medicine comprise ginger, realgar, hemlock parsley, rhizoma gastrodiae, leech and the like. The preparation method comprises the following steps: processing mixed materials into fine powder; and preparing the fine powder into capsules, watered pills, tablets or granules. The medicine can treat various headaches, dizziness, paralysis, numbness and the like caused by encephaloma, cerebral trauma, brain haemostasis, concussion of brain sequela, basilar papilledema and cerebral paralysis with high efficacy but without side effects.