The invention provides a traditional Chinese medicine composition used for treating lung cancer, and a preparation method and applications thereof. The traditional Chinese medicine composition is prepared from, radix stephaniae tetrandrae, bulbus fritillariae thunbergii, herb of spreading hedyotis, herba scutellariae barbatae, scolopendra, herb of black nightshade, rhizoma paridis, rhizoma imperatae, herba agrimoniae, and spica prunellae. The invention also discloses the preparation method. The preparation method comprises following steps: A, traditional Chinese medicine materials are weighed; B, dipping is carried out; C, heating decocting is carried out; D, heating is stopped, an obtained mixture is allowed to stand, and a supernatant 1 is collected; E, purified water is added for a second time of decoction; F, an obtained mixture is allowed to stand, and a supernatant 2 is collected, and is uniformly mixed with the supernatant 1; and G, concentration, subpackaging, and sterilizing are carried out. It is confirmed by animal experiments and clinical experiments that the traditional Chinese medicine composition can be used for therapy of advanced lung cancer and adjuvant therapy of early and middle stage lung cancer, and is capable of clearing heat and dissipating phlegm, detoxifying, softening hardness to dissipate stagnation, relieving swelling; and the traditional Chinese medicine composition also contains auxiliary raw materials capable of activating blood, stopping bleeding, and tonifying deficiency, so that the traditional Chinese medicine composition is capable of clearing phlegm-heat in lung, relieving swelling, avoiding bloody phlegm, and tonifying deficiency syndrome of the lung, and possesses excellent curative effect in treatment of lung cancer.