The invention discloses a traditional Chinese medicine preparation for treating rectal prolapse and a preparation method thereof and belongs to the field of traditional Chinese medicine. The active ingredients of the traditional Chinese medicine disclosed by the invention comprise the following raw materials: kneaded white leaves, raspberries, tremella, humifuse euphorbia herb, papaya, wild ginger, lophatherum gracile, myrobalan, sow thistle, semen armeniacae amarae, fruits of Highland Barley malt, calamitas urinae hominis, field horsetail, Lespedeza cuneata G. Don, asparagus lettuce and lantana camara. The medicinal materials of the traditional Chinese medicine preparation disclosed by the invention are suitable in compatibility and meet the theories of traditional Chinese medicine science and modern medicine and pharmacology, so that the preparation has the functions of tonifying the liver and kidneys, clearing away heat, drying dampness, checking diarrhea and relieving alopecia, improves the operating condition of local blood, has a remarkable curative effect to rectal prolapse, saves the treatment cost, is convenient to take, safe, reliable and free of any toxic and side effects, avoids replase after rectal prolapsed is cured, and has exact curative effect.