The invention discloses a traditional Chinese medicine composition for treating interstitial lung disease. The traditional Chinese medicine composition comprises the following components according to a certain weight ratio: bamboo leaves, raw gypsum, American ginseng, radix ophiopogonis, lily, dried rehamnnia root, prepared rehmannia root, fritillary bulb, radix scrophulariae, angelica sinensis, radix paeoniae alba, platycodon grandiflorum, rhizoma pinelliae, asparagus cochinchinensis, Chinese yam, radix stemonae, radix glehniae, frost mulberry leaves, chrysanthemum, schisandra chinensis, colla corii asini, cortex lycii radicis, astragalus membranaceus, rhizoma cimicifugae and radix bupleuri. The traditional Chinese medicine composition has the functions of clearing heat and promoting fluid production, boosting qi and nourishing yin, moistening lung and calming the nerves, replenishing and nourishing blood, and can be used for effectively treating interstitial lung disease.