The invention provides a traditional Chinese medicine composition for promoting healing of diabetic wounds. The composition is prepared by the following raw materials in parts by weight: 8-16 parts of notoginseng, 38-46 parts of scutellaria roots, 0.1-2 parts of borneol, and 0.1-0.5 parts of aquilaria wood essential oil. A preparation method comprises the following steps: 1. notoginseng and scutellaria roots are weighed in proportion, drying and crushing are carried out, and the materials are sieved by a 200 mesh sieve; 2. notoginseng powder and scutellaria roots are added into distilled water, immersion is carried out for 0.5 hours, ultrasonic treatment is carried out at 50 DEG C for 1 hour, and filtering is carried out; filter residues are added into ethanol whose concentration is 50% according to a proportion 1:10, ultrasonic treatment is carried out for 30 minutes, filtering and combination of filtrate are carried out, the filtrate is added into a rotary evaporator for condensation, and freeze drying is carried out; 3. according to a proportion, the aquilaria wood essential oil is diluted in 50 parts of a physiological saline solution of 5% propylene glycol; 4. according to a proportion, the borneol is added into an extract product, the solution of aquilaria wood is added according to a proportion, and after uniform stirring, the traditional Chinese medicine composition paste agent is obtained. The traditional Chinese medicine composition can accelerate healing of wounds of rats with diabetes.