The invention relates to a Chinese medicinal composition for treating skin itch and a preparation method thereof. The Chinese medicinal composition mainly comprises the following raw material medicaments: figwort root, root of red-rooted salvia, cortex dictamni, natural indigo, divaricate saposhnikovia root, safflower, peach seed, radix rehmanniae preparata, mint, cicada slough, kudzu-vine root, Mongolian snakegourd root, radix rehmanniae preparata, simpleleaf shrub chastetree fruit, reed rhizome, lalang grass rhizome, common lophatherum herb, gardenia, lightyellow sophora root, ash bark, red paeony root, tree peony bark, sinkiang arnebia root, dahurian patrinia herb, glandularstalk St. paulswort herb, erythrina indica lam, tangerine peel, combined spicebush root, areca peel and the like. The Chinese medicinal composition can be prepared into any common oral preparation by the conventional Chinese medicinal preparation method. The Chinese medicinal composition can obviously improve symptoms such as local or general skin itch caused by various skin diseases, food allergy, medicament allergy and the like. The Chinese medicinal composition has the advantages of exact clinical effects, obvious curative effect, quick response, low cost, basically no toxic or side effects and the like.