The invention discloses a traditional Chinese medicine pill used for treating chronic pneumonia and a preparation method, and belongs to the field of traditional Chinese medicine. The traditional Chinese medicine pill is prepared from adenophora stricta, fructus lycii, polygonatum kingianum, waxgourd seeds, Chinese yam, cortex lycii radicis, sinapis alba, perilla fruit, jujube, trichosanthis radix, dwarf lilyturf roots, tussilago farfara, bletilla striata, folium eriobotryae, all-grass of Winkled Marshweed, fritillaria cirrhosa, cortex mori radicis, luffa flowers, snakegourd fruit, herba houttuyniae, radix glycyrrhizae, gecko and almonds. The traditional Chinese medicine pill is accurate in formula and precise in material selection; according to the monarch, minister, assistant and guide principle, the medicine properties of the selected medicinal materials adapt to and supplement one another, the traditional Chinese medicine pill is special for the disease for disease causes, the traditional Chinese medicine pill has the functions of nourishing livers and kidneys, tonifying spleens and qi, tonifying stomachs, engendering liquid, replenishing vital essence, removing heat, moistening lungs, reducing phlegm, diffusing lungs, suppressing coughs, depressing qi and relieving asthma, and is good in absorption effect, remarkable in treatment effect and free of toxic and side effects and clinical adverse reactions, and the clinical verification shows that the cure rate of the traditional Chinese medicine pill for chronic pneumonia is high.