The invention discloses a traditional Chinese medicine composition for treating diabetes with yin and yang deficiency. The traditional Chinese medicine composition is characterized by being composed of the following components in parts by weight: 10 parts of echinopanax elatus, 10 parts of purple hypoestes herb, 20 parts of potentilla reptans, 15 parts of gymnadenia conopsea, 12 parts of lance asiabell root, 15 parts of aleuritopteris hopeana, 4 parts of licorice, 20 parts of polyalthia root, 15 parts of Chinese holly bark, 10 parts of osbeckia opipara, 12 parts of pecteilis susannae, 10 parts of root of wedelia urticifolia, 15 parts of crepis crocea, 15 parts of flatstem milkvetch seed, 15 parts of herb of dewberryleaf cinquefoil, 10 parts of pseudostellaria maximowicziana, 12 parts of ligustrum confusum, 15 parts of herba lespedezae cuneatae, 12 parts of raspberry, 12 parts of stellaria yunnanensis, 18 parts of melica scabrosa, 10 parts of gentiana sarcorrhiza, 8 parts of hermini-um balleyi, 15 parts of crepis phoenix, 20 parts of cucubalus baccifer, and 3 parts of freshwater sponge. The provided traditional Chinese medicine composition can effectively treat diabetes with yin and yang deficiency. The composition has been applied to 30 patients, the effective rate can reach 97%, the curative effect is good, and no relapse happens.