The invention provides a traditional Chinese medicine composition and a preparation method thereof. The traditional Chinese medicine composition is mainly prepared from the following components in parts by weight of 5-15 parts of ligusticum wallichii, 5-15 parts of rhizoma gastrodiae, 10-30 parts of kadsura pepper stems, 5-15 parts of radix angelicae pubescentis, 5-15 parts of fresh ginger sheets,5-15 parts of safflowers, 5-15 parts of Pseudo-ginseng, 5-15 parts of radix clematidis, 5-15 parts of erodium stephanianum willd, 5-15 parts of turmeric, 5-15 parts of borneol, 5-15 parts of Tibet snow lotus flowers, 5-15 parts of prepared rehmannia roots, 5-15 parts of radix astragali, 1-3 parts of capsaicine, 5-15 parts of radix angelica sinensis, 0.5-1.5 parts of ginseng, 0.5-1.5 parts of dimethyl sulfone, 2.5-7.5 parts of peppermint essence oil, 1-3 parts of fresh ginger essential oil, 1-3 parts of argy wormwood leaf essential oil and 90-240 parts of Baijiu. The traditional Chinese medicine composition has notable treatment effects of treating and preventing arthritis (particularly rheumatoid arthritis ), psoatic strain and sciatica, can eliminate pain caused by lumbar disc herniation, and can completely heal tendon and bone pain caused by attack by wind. The problems that at current, in the markets, medicines are difficult for effective treatment of symptoms, and are high in toxic and side effects are solved.