The invention discloses a composition for treating sexual dysfunction and prostate disease and a preparation method thereof. The composition comprises the following components: fructus lycii, fructus corni, rehmannia glutinosa, angelica sinensis, eucommia ulmoides, ligusticum wallichii, codonopsis pilosula, rhizoma polygonati, morinda officinalis, rhizoma curculiginis, fructus rosae laevigatae, fructus psoraleae, herba epimedii, schisandra chinensis, semen cuscutae, cinnamon, gorgon euryale seed, rhizoma cibotii, fructus cnidii, fructus alpiniae oxyphyllae, herba cistanche, liquorice, radix astragali, glossy privet fruit, mulberry, paratenodera sinensis saussure, cardamom, agastache rugosus, dried orange peel, cuttlebone, tremolite, gentian, rhizoma alismatis, herba taxilli, fructus tritici levis, hedgehog hide, cortex moutan, rhizoma anemones altaicae and herba asari. According to the composition, through the compatibility of the traditional Chinese medicines with the functions of nourishing kidney yin and warming and tonifying kidney yang and through reasonable regulation of the proportioning, the composition has the advantages of broad-spectrum effect, no side effect, remarkable treatment effect and short curing cycle when used for treating sexual dysfunction and prostate disease.