The invention discloses a lauraceae machilus chinensis traditional Chinese medicine composition and a preparation method thereof. The traditional Chinese medicine composition is prepared from lauraceae machilus chinensis branches and leaves, moxa, prepared rehmannia roots, the rhizome of chuanxiong, cortex acanthopanacis, amomum kravanh, amomum tsao-ko fruits, radix astragali preparata, radix angelica sinensis, oriental wormwood, rhizoma alismatis peach kernels, fructus evodiae, parched white peony roots, teasel roots, flos caryophylli, storax, cortex cinnamomi and rhizoma zingiberis. The preparation method of the lauraceae machilus chinensis traditional Chinese medicine composition comprises the steps that 1, batching is carried out according to composing of the traditional Chinese medicine composition; 2, the lauraceae machilus chinensis branches and leaves are taken to be washed, branches and leaves are separated, and low-temperature drying and dewatering are carried out; 3, the dried lauraceae machilus chinensis branches are smashed, the smashed lauraceae machilus chinensis branches and the auraceae machilus chinensis leaves are subjected to nature-preservative burning in a sealed container, and pulverizing is carried out; 4, the other traditional Chinese medicine in the accessories is smashed and screened; 5, the traditional Chinese medicine powder obtained in step 3 and step 4 is fully mixed. The lauraceae machilus chinensis traditional Chinese medicine composition has the effects of dispelling coldness and resolving dampness, and is good in treatment effect, fast ineffect taking, simple in preparation method, low in cost and suitable for wide popularization.