The present invention relates to a traditional Chinese medicine with the effects of activating blood circulation, dredging collaterals, strengthening sinews and bones, which can be prepared into the granules, tablets and capsules by malaytea scurfpea fruit, himalayan teasel root, drynaria rhizome of fortune, radix rehmanniae glutinosae, radix rehmanniae preparata, white paeony root, cassia twig, vinegar quenching pyrite, stir-fried myrrh, incised notopterygium rhizome, doubleteeth pubescent angilica root, prepared common monkshood mother root, epimedium herb, prepared kusnezoff monkshood root, stiff silkworm, common anemarrhena rhizome, ground beetle, twotooth achyranthes root, garden balsam stem, ephedra herb, east Asian tree fern rhizome, divaricate saposhnikovia root and the excipients. The preparation method is that: the water is added in the traditional Chinese medicines for boiling for 2 times, 5 times amount of water is added at the first time for boiling for 50 minutes, then the medicines are filtered; 4 times amount of water is added at the second time for boiling for 30 minutes, then the medicines are filtered; the filtrates are merged and prepared into the clear paste with the relative density of 1.15 to 1.17 at 85 DEG C by vacuum pressure reduction concentration, then the clear paste is cooled down, 4 times amount of ethanol is added, the supernatant liquid is taken and filtered after leaving for 24 hours, the ethanol is recovered and concentrated to the thick paste with the relative density of 1.32 to 1.35 at 50 DEG C, the thick paste is mixed with appropriate amount of excipients to be prepared into the granules, tablets and capsules. The present invention is in line with a variety of requirements of current medication, the dosage is accurate, the application is convenient, the carry, transportation and the storage are convenient, the bioavailability is high and the present invention has no obvious adverse taste of the drugs.