The invention relates to a Tibetan medicine and a preparation method thereof, in particular to a Chinese traditional medicine preparation which can effectively cure the digestive system diseases and a preparation method thereof. The Tibetan medicine is composed of more than 100 Tibetan medicines such as zuota, gold ash, silver ash, copper ash, iron ash, mica ash, diamond, jasper, pyromorphous crystal, ruby, sapphire, rose-color emerald, jade, amber, aventurine, pearl, whelk, lapis lazuli, coral, nacre, quartz, false islet stone, calamine, snakes ammonites, fibrous umite, magnet, calcite, iron ore, goethite, yellow lead, tabasheer, saffron, clove, nutmeg, cardamom, apples, bezoar, bear gallbladder, musk, nux vomica, myrobalam, black borneol, boat-casque aconite, cuckoo-bud tropaeolum beautiful aconite, etc. The preparation method includes six procedures of crushing, mixing, making pill, polishing, and packaging. The Chinese traditional medicine of the invention has notable curative effect, simple medicament form, and simple production process, and is worthy to be popularized and applied.