The invention discloses a medicinal composition for treating bronchiectasis, and a formation method thereof. The medicinal composition comprises, by weight, 5-20 parts of Radix Platycodonis, 5-20 parts of Radix Scutellariae, 10-30 parts of Herba Houttuyniae, 5-18 parts of apricot kernel, 8-25 parts of Cacumen Platycladi and 5-16 parts of honey-fried licorice root. The medicinal composition has the advantages of wide medicine sources, low cost, use convenience, no allergy, no side effects, and simultaneous treatment of principal and subordinate symptoms, has the efficacies of heat clearing, lung moistening, phlegm eliminating, pus expelling, qi rectifying and blood astringing, can substantially improve the western medicine symptoms (coughs, expectoration and hemoptysis) and traditional Chinese medicine symptoms (coughs, rough breathing, viscous and yellow phlegm, bloody phlegm, hemoptysis, fever thirst, stuffy feeling in chest, constipation, red tongue, yellow fur and slippery and rapid pulse) of phlegm-heat obstructing lung type bronchiectasis, can maintain or improve functions of the lung, can reduce acute attack, and can reduce the use amount of antibiotics in order to improve the living quality of patients.