The invention discloses a Chinese medicine composition for treating gastric ulcer and a preparation method thereof. The Chinese medicine composition is mainly formed by the following raw medicine materials: Poria cocos, coix seed, prepared frankincense, prepared myrrh, dalbergia wood, storax, rheum officinale, coptis, sangusis draconis, Rhizoma atractylodis, Mangnolia officinalis, fructus amomi, netmeg, Rhizoma atractylodis Macrocephalae, Chinese yam, Herba lycopi, charred catnip, charred Chinese arborvitae twig, dandelion, Mongolian snakegourd root, lightyellow sophora root, honeysuckle, lightyellow sophora root, white paeony root, Taraxacum officinale root, rhizoma cyperi and the like. The Chinese medicine composition of the invention can be prepared into any kind of common oral preparation according to the conventional Chinese medicine preparation method. The invention has the advantages that symptoms such as epigastralgia, ructus, acid regurgitation, heartburn, nausea, vomiting and the like are obviously improved, the clinical curative effect is exact, the curative effect is obvious and the rapid effect is obtained. Moreover, since the Chinese medicine composition is basically combined by homologous plant food medicines regulated in state pharmacopoeia, the cost is low, basically no toxic side effect exists and the like.