The invention discloses a traditional Chinese medicine composition for dispersing stagnated liver qi for promoting bile flow and applications thereof. The composition is prepared from the following Chinese herbal medicine raw materials in parts by weight by decocting with water and extracting: 10-15 parts of radix bupleuri, 25-36 parts of polygonum cuspidatum, 12-18 parts of curcuma aromatica, 10-15 parts of radix aucklandiae, 10-15 parts of melia toosendan, 7-11 parts of radix scutellariae, 25-36 parts of flos lonicerae, 10-15 parts of rhizoma cyperi, 10-15 parts of semen raphani, 10-15 parts of corydalis yanhusuo, 10-15 parts of rhubarb, 25-36 parts of dandelion, 25-36 parts of christina loosestrife herb, 7-11 parts of salvia miltiorrhiza, 5-8 parts of mirabilite, 10-15 parts of fructus aurantii immaturus, 25-36 parts of folium isatidis, 25-36 parts of herba artemisiae, and 10-15 parts of magnolia officinalis. The composition disperses stagnated liver qi for promoting bile flow, regulates qi to alleviate pain, diminishes inflammation and removes urinary calculus, and can be applied to the treatment of acute cholecystitis, infection of biliary tract, common bile duct and gallstone.