The invention discloses a functional traditional Chinese medicine sachet and a preparation method thereof, and relates to the technical field of traditional Chinese medicine sachets. The functional traditional Chinese medicine sachet comprises the following traditional Chinese medicines in parts by weight: rhizoma atractylodis, agastache rugosus, fructus evodiae, folium artemisiae argyi, cinnamon,fructus amomi, acorus calamus, radix angelicae, eupatorium, mint, clove, white chrysanthemum, tuber fleeceflower stem, albizia flower, juncus effuses, white sandalwood, borneol, flos magnoliae, ligusticum wallichii, schizonepeta, cassia twig, eupatorium, purple perilla and asarum. The traditional Chinese medicine sachet provided by the invention has the following advantages: volatile components of the traditional Chinese medicines are emitted in air and absorbed into the body through the respiratory tract and the skin to generate medicine effects; screened medicine powder is subpackaged and uniformly mixed according to different proportions to be divided into a small sachet A, a small sachet B and a small sachet C; the small sachet A, the small sachet B and the small sachet C are then loaded into a sachet together; and the effects of exorcising evil spirits, repelling mosquitoes, concentrating mind, calming qi, clearing heat and removing toxicity are achieved.