The invention discloses a traditional Chinese medicine composition for treating rheumatic lumbago and a preparation method thereof. The traditional Chinese medicine composition comprises the following raw medicines: cassia twig, Philippine paphiopedilum, notopterygium root, pubescent angelica root, angelica root, jasminum lanceolarium, capreolus velvet, furcate screwpine root, pawpaw, silkworm excrement, loose knot, sinomenium acutum, sweetgum resin, red sage root, vitex stem, crossostephium chinense, beautiful sweetgum fruit, achyranthes bidentata, suberect spatholobus stem and pangolin. The traditional Chinese medicine composition disclosed by the invention has the main efficacies of dispelling cold, removing dampness, and warming and activating meridian; when being used for treating the rheumatic lumbago, the composition has the advantages of best curative effect, capability of directing at lesions, short treatment course, easiness in medicine preparation, little toxic or side effect, convenience in administration, difficulty in relapse after cure and low cost.