The invention relates to a traditional Chinese medicine composition for improving glycolipid metabolism of diabetes mellitus and application thereof. The traditional Chinese medicine composition is prepared from the following bulk drugs in parts by weight: 9 parts of radix puerariae, 9 parts of radix astragali, 6 parts of radix codonopsis, 6 parts of rhizoma atractylodis macrocephalae, 6 parts ofporia cocos, 3 parts of liquorice root, 6 parts of radix ophiopogonis and 6 parts of perilla frutescens. The traditional Chinese medicine composition has the advantages that the bulk drugs and the weight ratio thereof are optimized, and the kudzuvine root in the formula is sweet and spicy in taste and mild in nature, enters the spleen and the stomach, and can clear yang, promote salivation, quenchthirst, relieve muscles and dredge collaterals; radix astragali is sweet in taste, slightly warm in nature and capable of tonifying spleen, lung and primordial qi, and the kudzuvine root and radix astragali jointly achieve the effects of tonifying qi, promoting salivation and tonifying spleen and serve as monarch drugs. Radix codonopsis is sweet in taste and mild in nature, and has the effects oftonifying qi and spleen, nourishing blood and engendering liquid; rhizoma atractylodis macrocephalae is bitter and warm, and has the effects of invigorating spleen, drying dampness and strengtheningmiddle-jiao transportation; the poria cocos is sweet in taste, tonifying spleen and excreting dampness, the radix codonopsis, rhizoma atractylodis macrocephalae and poria cocos are matched and have effects of tonifying spleen, reducing phlegm and clearing damp, and the three drugs are minister drugs. Radix ophiopogonis is sweet, slightly bitter and slightly cold and can nourish yin and promote salivation; perilla frutescens leaves are warm in nature, spicy in taste, capable of promoting qi circulation, harmonizing stomach, helping digestion and removing food stagnation, and radix ophiopogonisand perilla frutescens are adjuvant medicines together. The raw liquorice has the effects of tonifying qi, harmonizing the middle warmer and harmonizing the drugs to serve as conductant drugs.