The invention discloses a traditional Chinese medicinal preparation for treating fatty liver and a preparation method of the traditional Chinese medicinal preparation, and belongs to the field of traditional Chinese medicaments. The effective components of the traditional Chinese medicinal preparation comprise the following raw materials: serissa serissoides, Japanese banana leaf, buckwheat, Chinese ortichoke, phellodendri, juniper berry, buta graveolens, lygodium japonicum, agaric, tiarella polyphylla, cassia seed, birch bark, rhopilema esculentum, exocarpium, mungbean starch and horseradish. The traditional Chinese medicinal preparation is appropriate in medicinal material compatibility, accords with traditional Chinese medical and modern medical theories, has the effects of soothing liver and regulating qi, softening hard mass and removing stasis, dissipating dampness and clearing heat, strengthening the spleen and eliminating phlegm, has a remarkable effect on treating fatty liver, has the advantages of safety and reliability, quick response, no toxic or side effect, relapse prevention after healing, is convenient to take, can achieve the aim of treating both symptoms and root causes, and is worthy of clinical wide popularization and application.