The invention relates to a traditional Chinese medicine composition for treating osteonecrosis of the femoral head and a preparation method thereof. The traditional Chinese medicine composition is a medicament which is prepared by ginseng, membranous milkvetch root, Szechuan lovage rhizome, red paeony root, divaricate saposhnikovia root, suberect spatholobus stem, medicinal cyathula root, radix rehmanniae preparata, peach seed, safflower, sanchi, barbary wolfberry fruit, Chinese angelica, prepared common monkshood daughter root, deer horn gelatin, ephedra herb, stir-fried white mustard seed, epimedium herb, prepared common monkshood mother root, prepared kusnezoff monkshood root, scorpion, centipede, prepared frankincense, prepared myrrh, Szechwan Chinaberry fruit, ground beetle, native copper, dragon's blood and other medicines by the conventional pharmaceutical process. The invention has the advantages that the traditional Chinese medicine composition has special formula, exact efficacy, safety, economy, no obvious toxicity or side effects and effects of activating blood circulation, removing blood stasis, tonifying liver and kidney, strengthening spleen, benefiting qi, strengthening tendon and bone, dispelling pathogenic wind and dampness, dredging channels and relieving pain, thereby being applicable to patients with the osteonecrosis of the femoral head for administration.