The invention relates to a traditional Chinese medicine preparation for treating fractures and bone injuries. The traditional Chinese medicine preparation is characterized by being prepared from the following raw material medicines: radix notoginseng, draconis sanguis, woodlouse, safflower, peach kernel, eucommia bark, pyrite, teasel root, rhizoma cyperi, mastic, myrrh, white paeony root, rhizoma ligustici wallichii, angelica, earthworm, twotooth achyranthes root, prepared rehmannia root, astragalus root and rhizoma drynariae. The preparation method comprises the following steps: mixing the raw material medicines together, grinding the raw material medicines into a powder shape, sieving the powder into the granularity of 180 meshes, and preparing traditional Chinese medicine medicinal powder. By the clinical test of many years, the invention forms a treating prescription for treating the fractures and the bone injuries by researching the function and indication of each kind of medicine according to modern traditional Chinese medicine pharmacodynamics, carries out the clinical tests on more than one thousand cases of patients with the fractures and the bone injuries and has the effects of promoting blood circulation, relieving the pain, decreasing swelling, eliminating blood stasis, recovering wounds, promoting tissue regeneration, setting bone and treating injuries. The invention can dissipate blood stasis, promote blood circulation, diminish inflammation and alleviate pain, also has the function of tranquilizing the mind and has short treatment course, high curative effect, low treating expense and no adverse reaction and side effect, the cure rate reaches more than 90%, and the curative effect is very satisfactory to people.