The invention discloses a traditional Chinese medicine composition for treating herpes labialis and a preparation method thereof. The traditional Chinese medicine composition is prepared from, by weight, 11-19 parts of radix scutellariae, 15-25 parts of fructus forsythiae, 10-20 parts of fructus gardeniae, 14-22 parts of radix asparagi, 8-16 parts of rheum officinale, 6-13 parts of lemon grass, 10-20 parts of poria cocos, 7-14 parts of rhizoma alismatis, 15-25 parts of honeysuckle flowers, 16-24 parts of licorice roots, 9-18 parts of radix rehmanniae, 7-14 parts of rhizoma coptidis, 12-23 parts of medulla junci, 10-20 parts of medulla tetrapanacis, 8-16 parts of cortex phellodendron Chinese, 15-25 parts of bitter gourd seeds, 18-26 parts of sophora flowers, 9-18 parts of radix scrophulariae and 10-20 parts of rhizoma anemarrhenae. The traditional Chinese medicine composition is prepared from radix scutellariae, fructus forsythiae, fructus gardeniae, radix asparagi, rheum officinale, lemon grass, medulla junci, medulla tetrapanacis, cortex phellodendron Chinese, bitter gourd seeds and sophora flowers through scientific compatibility, can achieve the effects of clearing away heat and toxic materials, dispelling wind and purging fire, clearing away the heart-fire and heat, nourishing yin for lowering fire and guiding fire to origin through the synergistic effect of the raw materials, can be effectively used for treating the herpes labialis and is exact in treatment effect, good in treatment effect, capable of rapidly achieving the effects and short in treatment cycle, and the effective rate reaches 95% or above.