The invention discloses a traditional Chinese medicine composition for improving renal functions and restraining renal fibrosis. Active pharmaceutical ingredients of the traditional Chinese medicine composition comprise, by weight, 10-15 parts of the root of red-rooted salvia, 10-60 parts of astragalus membranaceus, 10-30 parts of herba epimedii, 5-30 parts of sinensis and 3-30 parts of prepared rhubarb. Clinical researches show that 168 patients with chronic renal insufficiency are treated by the traditional Chinese medicine composition, a remarkable clinical effect is obtained, clinical symptoms are reduced, the clinical symptoms of some patients are basically eliminated, the renal functions of the patients can be remarkably improved, blood urea nitrogen (BUN) and creatinine (Scr) are obviously reduced, and total effective rate achieves 88.66%. Animal researches show that the traditional Chinese medicine composition can delay development of chronic renal failure, and the mechanism of the traditional Chinese medicine composition is relative to effects of effectively restraining precipitation of renal tissue collagen and secretion of TGF (transforming growth factor)-beta, accordingly restraining renal fibrosis, and the like. The traditional Chinese medicine composition is low in clinical application cost and excellent in curative effect, and is safe and reliable.