The invention relates to a Chinese medicinal composition for treating skin diseases. The Chinese medicinal composition is prepared by stir-frying various Chinese herbal medicines such as phellodendron, baical skullcap root, manchurian wildginger, schizonepeta spike, bulbus fritilariae, golden larch bark, sulphur, realgar, toad venom, musk, mint rice, plant soot, salicylic acid and the like over slow fire, grinding accurately, mixing with badger fat, antelope oil and the like, grinding again and extracting. The Chinese medicinal composition can remove abnormal phlegmatic temperament, bile fluid and sepsis and relieve swelling and itching, and is used for treating parapsoriasis guttata (psoriasis), tinea manuum, tinea corporis, tinea pedis, tinea versicolor, intractable dermatitis, neurodermatitis, fungal skin diseases, leuconychia, purulent skin diseases, facial pityriasis, pityriasis rosea, seborrheic dermatitis, prurigo nodularis, scabies, eczema, herpes, acnes and the like.