The invention relates to a traditional Chinese medicine water-bindered pill preparation for treating bone fracture, wherein the composition can be used for treating various traumatic injuries, fractures and soft tissue injuries. The composition consists of traditional Chinese medicines such as peach kernel, pseudo-ginseng, dipsacus root, radix bupleuri, paeonia albiflora, Angelica sinensis, fried rhizoma cyperi, prepared rheum officinale, costus root, dried radix rehmanniae, root of common peony, flowers carthami, ground beeltle, hematoxylon, curcuma zedoary, prepared rheum officinale, herba lycopi, Polygonum cuspidatum, dragon's blood, Hippocampus kuda Bleeker, medical pipefish, prepared frankincense, prepared myrrh, fried rhizoma corydalis, angelica dahurica, dipsacus root, achyranthes root, Eucommia ulmoides, Rhizoma Drynariae, roasted OS macaca, homalomena occulta and lycopodium clavatum, wherein Ligusticum wallichii, prepared frankincense, prepared myrrh and fried rhizoma corydalis can promote qi circulation to relieve pain and remove blood stasis and stimulate the menstrual flow. Peach kernel, pseudo-ginseng, Angelica sinensis, root of common peony, flowers carthami and dragon's blood can stop bleeding and invigorate the circulation of blood and remove stasis and generate new tissues. Dipsacus root, achyranthes root, Eucommia ulmoides, Rhizoma Drynariae, roasted OS macaca, Hippocampus kuda Bleeker, medical pipefish, homalomena occulta and lycopodium clavatum can promote reunion of fractured bones and tonify liver and kidney. Radix bupleuri, radices sileris and the like can dispel wind and relieve exterior syndrome and dredge channels and collaterals. The composition provided by the invention has the bidirectional adjusting effect. The medicines are combined to have the functions of promoting qi circulation to relieve pain, promoting blood circulation to remove blood stasis, tonifying liver and kidney and reuniting bones.