The invention discloses a Chinese traditional medicine composition for clearing heat-toxicity and eliminating dampness and a preparation method thereof. The Chinese traditional medicine composition is mainly prepared by extracting the following effective components of a dozen of medical materials including indian bread, dandehon herb, frosythia fruit, pilose asiabell root, cimicifuga rhizome, belamcanda rhizome, wrinkled gianthyssop, pangolin, spina gleditsiae, nidus vespae, dahurian angelica root, tangerine peel, cordate houttuynia, goldthread root, cape jasmine, ptunella spike, kudzuvine root, and the like. The specific active components of the composition have the effects of clearing heat-toxicity, eliminating dampness and discharging pus to be sensible, is clinically used for stuffy nose, runny yellow viscous nose, acute and chronic rhinitis and paranasal sinusitis and can also obviously improve various symptoms of stuffy nose, dizziness and distending pain, nasal secretions increase, sinus nasalis area tendeness, deviated nasal septum, and the like.