The invention discloses a new traditional Chinese medicine composition for treating lung failure and a preparation method thereof, wherein the traditional Chinese medicine composition mainly comprises the following raw material medicines: monkshood, cassia twig, ginseng, American ginseng, astragali radix, angelica, tuber pinellia, lepidium seed, fructus trichosanthis, tussilago, perilla seed, mother of pearl, aweto, storax, benzoin, silkworm larva, grass-leaved sweetflag, agilawood, storax, fructus aurantii immaturus, dried orange peel, pangolin, rhizoma ligustici wallichii and the like. The traditional Chinese medicine composition can be prepared into any commonly used oral preparation according to a conventional traditional Chinese medicine preparation method. The invention can improve the symptoms of dyspnea, polypnea andpsychoneurosis and the symptoms of cyanosis, conscious disturbance, conjunctival congestion, chemosis, asterixis, papilledema and the like, and has exact clinical curative effect, remarkable curative effect and rapid effect taking. Because the traditional Chinese medicine composition is combined by basically adopting medicine and food homogenous medicaments specified by the national formulary, the traditional Chinese medicine composition has the advantages of low expense, basically no toxic or side effect and the like.