The invention relates to a traditional Chinese medicine composition for nourishing blood, tonifying kidney, growing hair and blacking hair and a preparation method thereof, the traditional Chinese medicine composition is prepared by the following pharmaceutical raw materials of rehmannia root, glossy privet fruit, tall gastrodia tuber, incised notopterygium rhizome, oriental waterplantain rhizome, mulberry fruit, radix salviae miltiorrhizae, tuber fleeceflower root, Chinese angelica, Szechuan lovage rhizome, white paeony root, south dodder seed, dwarf lilyturf tuber, oriental waterplantain rhizome, tree peony bark and common floweringquince fruit, and the traditional Chinese medicine composition is processed into any one formulation of clinically acceptable tablets, capsules, granules and the like by extraction, refining and other processes. The traditional Chinese medicine composition has the effects of nourishing blood, tonifying kidney, growing hair and blacking hair and is applicable to alopecia areata, alopecia totalis, seborrheic alopecia, scalp itching, more dandruff and grease and hair loss after disease or childbirth caused by liver and kidney deficiency and blood stasis and obstruction.