The invention discloses a heat-clearing and exterior-releasing traditional Chinese medicine composition for treating cold and fever and a preparation method thereof. The traditional Chinese medicine composition is mainly prepared from following raw material medicines including, by weight, 6-15 parts of fried almonds, 18-25 parts of chinese yam, 6-12 parts of mint, 4-6 parts of streptocaulon griffithii, 9-15 parts of ophiopogon japonicas, 6-12 parts of honeysuckle, 4-9 parts of rhizoma anemarrhenae, 5-15 parts of radix angelicae dahuricae, 3-9 parts of mix-fried radix glycyrrhizae, 2-6 parts of fresh ginger, 6-12 parts of date, 5-15 parts of folium perillae, 3-12 parts of platycodon grandiflorum, 9-16 parts of peucedanum praeruptorum, 9-13 parts of fructus arctii, 6-12 parts of nepeta cataria panicles, 4-9 parts of fructus viticis, 6-15 parts of notopterygium, 2-8 parts of litmus, 4-14 parts of divaricate saposhnikovia roots, 6-15 parts of xanthium sibiricum, 5-14 parts of forsythia suspensa, 12-20 parts of isatis tinctoria, 6-9 parts of veronicastrum sibiricum and 5-12 parts of bupleurum. The traditional Chinese medicine composition has effects of clearing heat and releasing exterior, dispersing wind and removing toxin and the like, is stable in quality and is high in curative ratio.