The invention provides a traditional Chinese medicine composition used for treating xerophthalmia and a preparation method thereof. The traditional Chinese medicine composition comprises the following bulk drugs: borneol, radix bupleuri, cortex fraxini, asparagus cochinchinensis, codonopsis pilosula, dogwood, chrysanthemum, campsis grandiflora, radix paeoniae alba, exocarpium benincasae, ligusticum wallichii, equisetum hiemale, elecampane, hawthorn leaves, groundsel, verbena, cortex acanthopanacis, concha haliotidis, rhodiola rosea, feather cockscomb seed and glossy privet fruit. The traditional Chinese medicine has the beneficial effects of being used for treating the xerophthalmia, good in curative effect, and quick in effect taking, and having good functions in the aspects of increasing lacrimal fluid volume, prolonging the breakup time of a tear film and improving the xerophthalmia.