The invention discloses a traditional Chinese medicine composition capable of treating gastritis, gastric ulcer and duodenal ulcer and a preparation method of the traditional Chinese medicine composition. The traditional Chinese medicine composition is prepared from the following components in parts by weight: 7 to 15 parts of caulis dendrobii, 4 to 9 parts of fructus citri sarcodactylis, 5 to 6 parts of rhizoma cyperi, 10 to 15 parts of endothelium corneum gigeriae galli, 4 to 6 parts of Chinese angelica, 4 to 10 parts of herba taraxaci, 3 to 5 parts of bighead atractylodes rhizome, 4 to 6 parts of radix aucklandiae, 3 to 7 parts of fructus aurantii immaturus, 5 to 12 parts of cuttlefish bone, 4 to 6 parts of liquorice root, 5 to 8 parts of rhizoma bletillae, 4 to 9 parts of fructus jujubae and 8 to 12 parts of pheretima. The traditional Chinese medicine composition has a remarkable curative effect on the gastritis, the gastric ulcer and the duodenal ulcer and the healing effect is obvious and is better than various treatment methods and medicines at present; the traditional Chinese medicine composition is high in safety and has no toxic side effect; the medicine can be used for adjusting chief cells, parietal cells and mucous cells and the cells are maintained in a normal level range and kept balanced; the medicine can be used for treating both principal and secondary aspect of disease; all the drugs are scientifically matched and the mutual coordination effect is sufficiently expressed; the traditional Chinese medicine composition has the effects of converging and engendering flesh, nourishing yin and clearing away heat, enhancing the appetite, treating, nourishing and protecting stomach and has the characteristics of low cost, rapid effect and lasting curative effect.