The invention discloses a Chinese medicinal composition for treating jaundice and a preparation method thereof. The Chinese medicinal composition of the invention mainly comprises the following raw material medicaments: virgate wormwood herb, Indian buead, plantain seed, oriental waterplantain rhizome, lalang grass rhizome, vine root, heartleaf houttuynia herb, coix seed, talc, ricepaperplant pith, belvedere fruit, pyrrosia leaf, longhairy antenoron herb, giant knotweed rhizome, tangerine peel, costus root, rhubarb, gypsum, anemarrhena asphodeloides bunge, mongolian snakegourd root, common lophatherum herb, gardenia, unprepared rehmannia root, seed of feather cockscomb, common selfheal fruit-spike, figwort root, tree peony bark, honeysuckle flower, dandelion and the like. The Chinese medicinal composition of the invention can be prepared into any common oral preparation by the conventional Chinese medicinal preparation method. The Chinese medicinal composition has the advantages of capability of remarkably improving symptoms such as jaundice, hypodynamia, discomfort, skin itch, skin yellowing, deep urea color, fever, epigastralgia, hepatomegaly and the like, determined clinical curative effect, remarkable curative effect, quick response, low cost, basically no toxic or side effect and the like.