The invention discloses traditional Chinese medicine granules for controlling red-skin diseases of grass carps and a preparation method of the traditional Chinese medicine granules. The traditional Chinese medicine granules are composed of radix gentianae, radix scutellariae, cortex phellodendri, rheum officinale, sophora flavescens, herba houttuyniae, kalmegh and radix glycyrrhizae. The traditional Chinese medicine granules comprise the following components, by weight, 2-4 parts of radix gentianae, 2-4 parts of radix scutellariae, 2-4 parts of cortex phellodendri, 1-2 parts of rheum officinale, 1-2 parts of sophora flavescens, 1-2 parts of herba houttuyniae, 1-2 parts of kalmegh and 1-2 parts of radix glycyrrhizae. The traditional Chinese medicine granules are prepared by conducting decoction and then adding cane sugar and starch. The traditional Chinese medicine materials are reasonably combined in the traditional Chinese medicine granules for controlling the red-skin diseases of the grass carps, therefore, the antisepsis and anti-inflammation efficacy and the efficacy of strengthening immunity are very remarkable, a drug for effectively treating the red-skin diseases of the grass carps is provided for fish culture, the traditional Chinese medicine granules have the advantages of being rapid in effectiveness, definite in curative effect and free of medicine residues and any toxic and side effect, and the preparation method is simple and capable of meeting the requirements for large-scale industrial production.