The invention relates to a Chinese herbal medicinal composition for treating atrophic gastritis and a preparation method thereof. The Chinese herbal medicinal composition consists of a medicine A and a medicine B which are alternately used, wherein the medicine A comprises the following Chinese herbs: dandelion, camptotheca acuminata, tripterygium hypograucum, herba patriniae and hedyotis diffusa; and the medicine B comprises the following Chinese herbs: groundsel, dandelion and tripterygium hypograucum. The Chinese herbal medicinal composition has the advantages as follows: the Chinese herbal medicinal composition is formulated from the Chinese herbs, most of which have the effects of smoothening Qi, stopping pains, clearing heat and toxic materials, regulating the liver and the stomach, mainly eliminating toxicity, removing stasis, regulating the body immunity to be stable, regulating the liver and the stomach, eradicating esophageal diseases and accelerating gastric mucosa regeneration; after the Chinese herbal medicinal composition is used, the Chinese herbal medicinal composition takes effect fast and can quickly relieve pains of a patient; and after treatment, the incidence of the atrophic gastritis is low and the therapeutic effect is consolidated.