The invention relates to the field of medicines and in particular relates to a traditional Chinese medicine composition with effects of beautifying and protecting skin as well as a preparation methodand application thereof. The traditional Chinese medicine composition is prepared from the following medicines in parts by weight: 15-25 parts of black false hellebore, 15-25 parts of sweet wormwood,15-25 parts of wheat straws, 15-25 parts of buckwheat straws, 15-25 parts of eggplant stalks, 20-30 parts of wax gourd vines, 20-30 parts of mulberry, 20-30 parts of herba portulacae, 30-50 parts of halite, 30-50 parts of lime and 40-50 parts of folium artemisiae argyi. The traditional Chinese medicine composition disclosed by the invention is prepared by a scientific method by virtue of reasonable compatibility, so that the product is stable in drug efficacy, rapid in efficacy, convenient to use, fast in effects and obvious in curative effects, has the effects of removing necrotic tissue andevil, eliminating melanin, healing sore and promoting granulation, beautifying and protecting skin and the like, has excellent effects in the aspect of removing melanoma, age pigment, common wart, plane warts and yellow-face warts, and does not have any toxic or side effect. Moreover, due to the mutual effects of the active ingredients, the drug availability is high, and the best synergistic treatment effect can be achieved.