The invention discloses a traditional Chinese medicine composition for preventing and treating vascular dementia. The traditional Chinese medicine composition for preventing and treating vascular dementia comprises ginseng, gastrodia elata, Euonymus alatus and Ligusticum wallichii. The composition can be prepared into Chinese herbal preparation crude drug for preventing and treating vascular dementia. The ginseng and the Ligusticum wallichii are extracted with alcohol, the gastrodia elata and the Euonymus alatus are extracted with water, the obtained alcohol extract and the obtained water extract are mixed, the mixture is dried under vacuum and then is pulverized to obtain the final product, and the composition can be directly taken orally or is prepared into other dosage forms such as granules, capsules, soft capsules, electuaries, pills and decocted extracts. The composition is completely prepared from natural medicinal plants, does not contain hormones, and does not contain other chemical synthetic products such as pigment, and even if a patient orally takes the composition continuously, no toxic and side effect is performed on the human body. The traditional Chinese medicine composition contains various easily absorbable ingredients such as ginsenoside, chuanxiongol, chuanxiongzine, gastrodin and quercetin, can be effectively used for treating the vascular dementia, increases cerebral blood flow, reduces cerebral vascular resistance, improves body immunocompetence, and has effects of tonifying deficiency, promoting intelligence, suppressing the hyperactive liver, subsiding Yang, dispelling blood stasis and dredging collaterals.