The invention discloses a compound composition of traditional Chinese medicine granules for regulating liver regeneration and prevention and treatment methods for chronic liver diseases by using the compound alone or in combination with antiviral medicine. The medicine is composed of: 5-30 parts of prepared Chinese foxglove root, 5-30 parts of virgate wormwood, 3-9 parts of turmeric, 3-12 parts of licorice, 3-15 parts of schisandra fruit, 5-15 parts of underleaf pearl, 5-30 parts of diffusa , 5-30 parts of poria, 5-30 parts of coix seed, 5-30 parts of salvia fruit, 1-10 parts of curcuma rhizome, 3-12 parts of dodder, and 5-15 parts of mistletoe For people suffering from chronic liver diseases (drug-induced liver disease, alcoholic or non-alcoholic fatty liver disease, autoimmune liver disease, viral hepatitis, etc.) which have high risk of liver failure, liver cirrhosis, and liver cancer, and people suffering from liver cancer or people after liver cancer surgery, clinical and experimental evidences show that the traditional Chinese medicine granules have synergies of regulation of liver regeneration and anti-virus, anti-liver injury, anti-liver fibrosis, and liver cancer prevention, and a relatively high level of clinical evidence based medicine evidences are obtained.