The invention relates to the technical field of traditional Chinese medicine healthcare, in particular to traditional Chinese medicine for clearing damp, relaxing muscles and benefiting bones as wellas a preparation method of the traditional Chinese medicine. The traditional Chinese medicine is prepared from radix angelicae sinensis, fructus hordei germinates, rhizoma zingiberis, radix schizophragmae integrifoliae, radix aconiti carmichaeli, radix aconiti, flos caryophylli, black ants, flos carthami, red yeast, agilawood, centipede, cleat, cortex lycii radicis, herba phrymae leptostachyae, rhizoma gastrodiae, herba schizonepetae, radix angelicae, sandalwood, frankincense, black beans, radix achyranthis bidentatae, caulis erycibes, herba schizonepetae, scorpio, camphor, loofah sponge, lignum sappan, red dates, chili, rhizoma drynariae, radix aucklandiae, rhizoma et radix notopterygii, fructus psoraleae, semen citri reticulatae, herba epimedii, ginseng, long-noded pit viper, folium artemisiae argyi, flos chrysanthemi, herba menthae, herba aristolochiae mollissimae, dried body of ground beetle, radix aconiti agrestis, radix saposhnikoviae, radix angelicae pubescentis, rhizoma chuanxiong, radix dipsaci, rhizoma curculiginis, bombyx batryticatus, radix notoginseng, cortex cinnamomi and wine. The preparation method of the traditional Chinese medicine comprises the following steps: preparing materials, preparing traditional Chinese medicine basic wine, preparing auxiliary medicine, preparing main medicine, preparing adjuvant, and preparing the traditional Chinese medicine for clearing damp, relaxing muscles and benefiting bones. The traditional Chinese medicine of the invention is used for treating rheumatoid arthritis, rheumatoid arthritis, hyperostosis and numbness and discomfort of tendons and muscles.