The invention discloses a traditional Chinese medicine composition for treating eczema of scrotum as well as a preparation method and use thereof, belonging to the technical field of Chinese medicine production. The traditional Chinese medicine composition comprises material medicines or extract thereof as follows: felwort, frankincense, Chinese angelica, schizonepeta, prepared rehmannia roots, fructus cnidii, radix paeoniae alba, perilla leaves, poria cocos, ligusticum wallichii, radix scrophulariae, coptis chinensis, Chinese parsnip roots, cocklebur fruits, cortex dictamni, raw liquorices, honeysuckle, tribulusterrestris, lithospermum, golden cypress, polyporus umbellatus, radix angelicae pubescentis, root of red-rooted salvia and ligusticum. The traditional Chinese medicine disclosed by the invention is scientifically prepared according to the dialectical treatment theory of the traditional Chinese medicine, has the effects of regulating qi to activate blood, clearing away heat and eliminating dampness, vulva eczema, eczema scabies, arthritis with fixed pain caused by dampness and low back pain, is high in recovery rate, short in course of treatment, low in recurrence rate, less in toxic and side effect, and better in effect for acute, sub-acute and chronic eczema scrota, and worthy of clinical popularization and application.