The invention discloses a traditional Chinese medicament for treating femoral shaft fractures and a preparation method of the traditional Chinese medicament. The traditional Chinese medicament comprises the following raw medicinal materials: codonopsis pilosula, astragalus membranaceus, prepared rehmannia root, bighead atractylodes rhizome, scabrous mosla herb, Chinese angelica, yam, white hyacinth bean, liquorice, acanthopanax, rhodiola rosea, honey, placenta hominis, teasel root, cistanche, seahorse, adenophora tetraphylla, ligusticum wallichii, radix curcumae, frankincense, safflower, myrrh, corydalis amabilis, resin of sweetgum, suberect spatholobus stem, ground beetle, native copper, sappanwood, rhizoma drynariae, artemisia anomala and yellow-bell clematis. The traditional Chinese medicament has the beneficial effects that the medicament is mainly used for treating incipient-stage femoral shaft fractures, has the effects of tonifying qi and promoting granulation, activating blood circulation and dredging collaterals, and can be used for 'removing stasis, promoting dredging collaterals, and healing fracture', promoting bone cell granulation and recovering nerves and muscles on the periphery of bone cells; the drug effect can directly reach the focus, the preparation process is simple and convenient; the medicament has the advantages of small toxic and side effect, low cost, drug-tolerance prevention and relapse prevention after healing.