The invention relates to a traditional Chinese medicine for treating pneumoconiosis and drug-tolerant pulmonary tuberculosis and a preparation method thereof, which improve and eliminate the pathological residues through the synergy of all medicine according to the dialectic theory of the traditional Chinese medicine, thus leading the body fluid and other organic substances to be transferred to the lung and achieving the effect of rapidly relieving and getting rid of disease and health recovery. The traditional Chinese medicine prepared in the invention comprises the raw materials with weight ratios as follows: 8-12 parts of cordyceps sinensis, 3-7 parts of tokay, 250-350 parts of Pinellia tuberifera, 25-300 parts of Chinese wolfberry, 250-350 parts of Bletilla hyacinthina reichb, 15-50 parts of balloon flower, 3-20 parts of mulberry bark, 3-20 parts of shizandra berry, 250-350 parts of liquorice root, 45-55 parts of bulb of fritillary, 15-25 parts of almond, 15-25 parts of Tatarian Aster Root, 25-35 parts of coltsfoot, 15-25 parts of Blackberrykiky Rhizome, 8-12 parts of root of straight ladybell, 8-12 parts of dried orange peel, 8-12 parts of sugared sesame powder, 10-20 parts of polygala tenuifolia, 8-12 parts of red tangerine peel, 15-25 parts of ginkgo seed, 15-25 parts of trichosanthes kirilowii shell, 15-25 parts of white muscardine silkworm, 8-12 parts of placenta hominis, 4-8 parts of Scutellaria baicalensis, 8-12 parts of radix peucedani, 8-12 parts of perilla seed.