The invention discloses a traditional Chinese medicine for treating scrofula and a preparation method thereof. The traditional Chinese medicine comprises the following raw materials: toad venom, orange peel, safflower, borneol, elm bark, alum, rhizoma Arisaematis, pangolin, myrrh, snake slough, swim bladder, euphorbia lunulata, slug, a castor-oil plant, scorpion, rosa rugosa, Ixeris japonica, Scammoniae radix, edgeworthia chrysantha lindl, black pepper, sophora flower and dandelion. According to the invention, the above-mentioned Chinese herbal raw materials supplement each other, exert the effects of warming and dispelling congealing cold, reducing phlegm, removing toxins, soothing the liver, dispelling melancholy, tonifying qi and blood and have good treatment effects on scrofula; compared with the prior art, the traditional Chinese medicine provided by the invention has the advantages of a short treatment course, easiness, convenience, no toxicity and no side-effects.