The invention provides a traditional Chinese medicine composition with mosquito repelling and itching relieving efficacies, and a preparation method thereof. The composition is prepared from raw medicines of, by weight: 30 to 50 parts of salvia miltiorrhiza, 15 to 25 parts of clove, 15 to 25 parts of radix astragali mongolici, 15 to 25 parts of honeysuckle flower, and 6 to 10 parts of wild dendranthema flower. According to the method provided by the present invention for preparing a Chinese herbal medicine extract, the extraction and separation method is simple, extraction rate of active components through ultrasonic and backflow extractions is high, product purity is high, and product quality is greatly improved. The traditional Chinese medicine components have functions of bacteria inhibiting, virus resisting, inflammation resisting, heat relieving, pain relieving, immune function regulating, sweat secretion inhibiting, skin soothing, and the like. Therefore, the extract have good efficacies as a mosquito repellant. The extract is widely applied in the preparation of ideal mosquito repelling floral water. As a result of experiments, the preparation has no toxic or side-effect, and is suitable for infants and children.