The present invention discloses a formula of a traditional Chinese medicine for treating cancer and rheumatism. The traditional Chinese medicine is characterized in that the traditional Chinese medicine is prepared from the following bulk drugs: 8-12 g of raw kusnezoff monkshood mother root, 25-35 g of raw common monkshood mother root, 8-12 g of nux vomica;dog button, 8-12 g of sanchi, 15-25 g of dried ginger, 4-6 g of realgar, 4-6 g of pepper, 8-12 g of peach seed, 8-12 g of Chinese clematis root and rhizome, 8-12 g of submature bitter orange, 8-12 g of tall gastrodia rhizome, 25-35 g of red peony root, 8-12 g of psoralea corylifolia, 10-20 g of angelica archang lica, 8-12 g of wild celery, 4-6 g of myrrh, 35-45 g of largehead atractylodes rhizome, 8-12 g of Sichuan cypress, 8-12 g of wrinkled gianthyssop herb, 8-12 g of root-bark of manybract fissistigma, 8-12 g of weeping forsythia fruit, 8-12 g of fineleaf schizonepeta herb, 25-35 g of clove, 8-12 g of Chinese ephedra herb, 8-12 g of common bletilla tuber, 10-20 g of swordlike atractylodes rhizome, 15-25 g of safflower, 8-12 g of actinolite, 4-6 g of brevifiber actinolite, 8-12 g of radix polygonum multiflorum, 4-6 g of licorice root, 4-6 g of cantharis, 8-12 g of centipede, 8-12 g of black cicada slough, 4-6 g of stiff silkworm, 15-25 g of ground beetle, 4-6 g of pangolin, 4-6 g of scorpion, 8-12 g of snake slough, 0.2-0.4 g of musk, 8-10 g of long-nosed pit viper, 10-20 g of earthworm, 4-6 g of borneol, and 4-6 g of camphor. The traditional Chinese medicine has characteristics of reasonable formula, simple preparation method, significant cancer and rheumatism treatment effect, and no toxic-side effect, wherein a clinical application effective rate is 100%, and a cure rate is more than 90%.