The invention discloses a Chinese medicinal preparation for treating breast diseases and uterine fibroid and a preparation method thereof. The Chinese medicinal preparation is prepared by extracting and mixing the following raw materials in percentage by weight: 8 to 15 percent of Chinese thorowax root, 4 to 6 percent of turmeric root-tuber, 3 to 6 percent of pangolin, 4 to 6 percent of nutgrass galingale rhizome, 3 to 5 percent of thunbery fritillary bulb, 3 to 5 percent of snake gourd fruit, 3 to 4 percent of hemlock parsley, 3 to 5 percent of suberect spatholobus stem, 2 to 4 percent of red-rooted salvia root, 2 to 3 percent of common burreed rhizome, 2 to 3 percent of curcuma zedoary, 2 to 3 percent of frankincense, 2 to 3 percent of myrrh, 3 to 5 percent of rhizoma corydalis, 3 to 5 percent of turtle shell, 2 to 4 percent of spina gleditsiae, 2 to 3 percent of semen litchi, 5 to 6 percent of selfheal, 3 to 6 percent of Astragalus root, 2 to 4 percent of angelica, 2 to 3 percent of Atractylis ovate, 2 to 3 percent of white peony root, 2 to 3 percent of poria, and 2 to 3 percent liquorice. The Chinese medicinal preparation can be used for treating patients with hyperplasia of mammary glands, mamstitis or hysteromyoma, and has high clinical cure rate and good healing effect.