The invention discloses a traditional Chinese medicine composition for treating diabetes and a preparation method of the traditional Chinese medicine composition. The traditional Chinese medicine composition for treating diabetes comprises the following raw material drugs: herba gelsemii elegantis, herba cistanches, radix rehmanniae, borneol, schisandrae Chinensis, radix achyranthis bidentatae, bulbus fritillariae cirrhosae, rhizoma atractylodis, radix aucklandiae, herba corydalis bungeanae, radix et rhizoma glycyrrhizae, radix salviae miltiorrhizae, semen cassiae, pericarpium citri reticulatae, artemisia capillaris Thunb., poria, fructus lycii, fructus jujubae, common yam rhizome, herba saussureae, rhizoma atractylodis macrocephalae, flos carthami, flos lonicerae, herba lysimachiae, plumula nelumbinis, radix rehmanniae preparata, radix scrophulariae, arctium lappa L., white chrysanthemum., tagetes patula L., lignum aquilariae resinatum, citrus limon, fructus crataegi, radix astragali, astragalus complanatus, radix sophorae flavescentis, radix angelicae sinensis, trichosanthes kirilowii Maxim., draba nemorosa L., ophiopogon japonicus, aloe, rhizoma corydalis, ramulus cinnamomi, radix gentianae macrophyllae, piper longum Linn., piper cubeba, angelica dahurica, imperata cylindrical, herba taraxaci, flos trollii farreri, aconitum carmichaelii / radix, rhizoma coptidis, maytenus hookeri Loes., herba scutellariae barbatae, hedyotis diffusa, bulbus lilii, radix polygoni multiflori, hibiscus mutabilis, vitamin and penicillin sodium. Through the successful invention of the traditional Chinese medicine composition and the preparation method thereof, more diabetics can be radically treated to be healthy enough to enjoy food and drinks.