The invention discloses medicine for treating liver-Yang hyperactivity, calming liver wind, and tonifying kidney yin and a preparation method. The medicine consists of Tuckahoe, scutellaria, uncaria, prunella, corn silk, cortex moutan, root of rehmannia, prepared rhizome of rehmannia, Chinese wolfberry, dogwood, radix cyathulae, Chinese yam, and medicated leaven. The preparation method comprises: firstly, soaking the Chinese yam in grain alcohol; secondly, soaking the prepared rhizome of rehmannia and the radix cyathulae in the grain alcohol; thirdly, drying and crushing the Tuckahoe, the scutellaria, the cortex moutan, chrysanthemum, the prunella, the uncaria, the corn silk, the Chinese yam, the root of rehmannia, the Chinese wolfberry, the dogwood, the medicated leaven, the prepared rhizome of rehmannia, and the radix cyathulae; and fourthly, putting fine powder into a sugar coating machine, adding 20 to 30 percent of dilute hydromel into the fine powder, stirring the mixture to prepare water-containing pills, and packaging the pills. The medicine has the advantages of reasonable formulation, remarkable medicine effect, full absorption, alleviation function, innocuousness, low cost, simple process, remarkable curative effect; in addition, the medicine can calm nerves, benefit kidney essence, fill encephalon, nourish Yin and calm wind. The preparation method has the advantages of simple process, remarkable curative effect, full absorption, alleviation function, innocuousness and low cost, and is suitable for industrialized production.