The invention belongs to the field of pharmaceutical preparations, and in particular relates to a composition of traditional Chinese medicine preparations for treating diabetes, a preparation method and application thereof. The composition of the traditional Chinese medicine preparation for treating diabetes, the composition is made of the main drug and auxiliary materials, the main drug is composed of the following components by weight: 10-20 parts of astragalus, 10-20 parts of rehmannia glutinosa, cornus officinalis 3-8 parts of meat, 6-10 parts of Chinese yam, 8-12 parts of curcuma, 3-8 parts of motherwort, 2-5 parts of salvia miltiorrhiza, 2-5 parts of rhubarb, the auxiliary materials are β-cyclodextrin and solid preparation auxiliary materials, The β-cyclodextrin is used to include the zedoary volatile oil to form the zedoary oil β-cyclodextrin inclusion complex, and the zedoary volatile oil is obtained by extracting the zedoary; the method for preparing the preparation provided by the present invention improves The quality of the product is improved and the industrialized production is easy; the obtained preparation conforms to the drug standard, has a good hypoglycemic effect, and can improve the heart, liver and kidney functions, abnormal lipid metabolism and retinal microvascular tumor lesions in mice.