The invention discloses a traditional Chinese medicine preparation for treating diabetic peripheral neuropathic pain and belongs to the technical field of traditional Chinese medicine. The preparation is prepared from, by weight, 0.5 part of cassia twigs, 0.2 part of radix angelicae, 0.35 part of Chinese mosla herb, 1.3 parts of fructus xanthii, 1.15 parts of peach twigs, 0.55 part of drynaria total flavonoids, 2 parts of schefflera kwangsiensis, 0.35 part of multiflower knotweed vines, 0.05 part of pearl powder, 0.4 part of semen ziziphi spinosae, 1.2 parts of fructus choerospondiatis, 1.25 parts of semen platycladi, 0.3 part of cinnamon, 0.25 part of clove, 0.015 part of fennel, 0.035 part of illicium verum, 0.5 part of prunus mume, 0.45 part of semen litchi, 0.15 part of tangerine seeds and 3 parts of auxiliary materials. The invention further provides a preparation method of the preparation. The traditional Chinese medicine is stable and controllable, and has a remarkable effect on treatment of peripheral neuropathic pain symptoms of diabetic patients. Clinical application verifies that symptom treatment side effects are few, the preparation is soft, harmless and free of addiction, obvious adverse effects do not occur, and the clinical total effective rate of the Chinese medicine reaches 86.7%.