The invention discloses a traditional Chinese medicine composition for treating icterohepatitis and a preparation method thereof. The traditional Chinese medicine composition mainly comprises the following Chinese medicinal herbs: stem of capillary sagebrush, coptis, kudzu-vine root, honeysuckle flower, chrysanthemum, gypsum, rhizoma anemarrhenae, radix bupleuri, gardenia, isatis root, dyer woad leaf, cordate houttuynia, redroot gromwell root, radix geutianae, radix sophorae flavescentis, ash bark, rheum officinale, antelope's horn, folium mori, poria cocos, talcum, rhizoma alismatis, semen plantaginis, herba lysimachiae, rhizoma cyperi, wrinkled giant hyssop, rhizoma atractylodis, officinal magnolia bark, rosewood heart wood, pangolin, agilawood, baical skullcap root, taraxacum officinale root, herba violae and radix scrophulariae. The traditional Chinese medicine composition can be prepared into any one common oral preparation according to the conventional traditional Chinese medicine preparation method. The invention can remarkably improve the symptoms of jaundice, strength lacking, anorexia, nausea and vomiting, liver distending pain, abdominal distension, constipation or diarrhea, skin itch, liver polycystic swelling, compact texture and pressing pain, rap pain, dysfunction of liver and the like caused by the icterohepatitis. Because the traditional Chinese medicine composition is combined by adopting medicinal and edible medicinal herbs specified in the Nation Formulary basically, the invention has the advantages of low cost, no toxic or side effect and the like.