The invention relates to the technical field of the medicine of Chinese medicinal herbs, in particular to a Chinese medicinal herb for improving the clinic cognitive impairment of dementia patients and a preparation method thereof. The Chinese medicinal herb is prepared from the following raw material medicaments in percentage by weight: 9 to 30 percent of root of red-rooted salvia, 6 to 18 percent of desertliving cistanche, 9 to 30 percent of tortoise plastron, 9 to 30 percent of common macrocarpium fruit, 6 to 18 percent of grassleaf sweelflag rhizome, 6 to 18 percent of polygalae root and 6 to 18 percent of szechuan lovage rhizome, wherein the sum of the weight percentage of the raw material medicaments is 100 percent. The preparation method comprises the following steps of: decocting tortoise plastron in water for 30 minutes, adding root of red-rooted salvia, desertliving cistanche, common macrocarpium fruit, grassleaf sweelflag rhizome, polygalae root and szechuan lovage rhizome for decocting for 25 minutes, decocting twice for 25 minutes, and mixing the two-time decoction to obtain a decoction medicine. The Chinese medicinal herb can improve the clinic cognitive impairment of the dementia patients and improve daily living ability, has the effects of tonifying kidney, replenishing vital essence, invigorating blood circulation, inducing resuscitation, promoting mentality and the like, and has the obvious effect on the improvement of low cognitive competence of the dementia patients.