The invention provides a preparation method of a traditional Chinese medicine for treating blood stasis type insomnia and belongs to the technical field of preparation method of traditional Chinese medicines. At present, a sedative-hypnotic drug, an antianxiety agent or an antidepressant is commonly adopted to treat the blood stasis type insomnia, and has the defect that the toxic and side effect is serious. The technical scheme provided by the invention is as follows: the traditional Chinese medicine for treating the blood stasis type insomnia is prepared by soaking rosa chinensis, pseudo-ginseng, setose thistle, camellia japonica, field thistle, osbeckia chinensis, folium artemisiae argyi, cactus, hairyvein agrimony, rhizoma bletillae, furnace soil, crinis carbonisatus, rumex japonicas, marmor serpentinatum, radix boehmeriae, madder, common sage herb, hollyhock flower, eclipta, ossa draconis, albizia julibrissin, polygala tenuifolia, tuber fleeceflower stem, coral, semen boitae, poria with hostwood, gagea lutea, salvia miltiorrhiza and liquorice into water, then decocting for 3h by slow fire, and filtering to remove slag to obtain liquid medicine which is the traditional Chinese medicine for treating blood stasis type insomnia. The traditional Chinese medicine prepared by the method has the advantages that the toxic and side effect is low, the course of treatment is short and the curative ratio is high, and can be used for avoiding the adverse drug reaction caused by western medicines.