The invention provides a traditional Chinese medicinal composition for treating woman vulva squamous epithelial cell proliferation and a preparation method and an application thereof. The traditional Chinese medicinal composition is prepared by using phellodendron, fructus forsythia, lawsonia inermis, Leucas mollissima chinensis and the like as main raw materials according to a certain weight ratio. the medicine provided by the invention has functions of clearing heat, removing dampness, eliminating patch, relieving itching, depriving wetness, dispelling the wind, sterilizing, promoting blood circulation to remove meridian obstruction, resolving hard lump, warming the kidney, nourishing yin, preventing precancerous lesions and the like. Multiple drugs also have synergism. The traditional Chinese medicinal composition has advantages of reasonable medication, scientific compatibility of medicines, low recurrence rate, high cure rate, good prostecdtive efficacy and no side-effect for external use. The application of the traditional Chinese medicinal composition is better than other current treatment methods.