The invention relates to a traditional Chinese medicine for curing type II diabetes and a preparation method thereof. The traditional Chinese medicine for curing type II diabetes comprises cooked ginseng, codonopsis pilosula, fried raidx astragali, herba schizonepetae, red kaoline, limonite, rhizoma atractylodis macrocephalae, eleutherococcus senticosus root, nutmeg, fructus psoraleae, lotus seed, cherokee rose, radix linderae, fructus alpiniae oxyphyllae, rhizoma zingiberis, sorghum zingiberis, white pepper, black pepper, saposhnikovia divaricata, ginger, radish leaf, radish seed, tsaoko amomum fruit, fructus galangae, cornu cervi pantotrichum, penis and testes of deer, deerhorn glue, fenugreek, morinda officinalis, dogwood, cooked aconite, silkworm excrement, eucommia bark, rhizome cibotii, raspberry, mantis egg-case, notopterygium root, radix angelicae pubescentis, asarum, rhizoma curculiginis, longspur epimedium, medlar, dodder, flastem milkvetch seed, gordon euryale seed, bouquet aconite, dioscorea opposita thumb and rhizoma atractylodis. The invention is suitable for a patient population with diabetes mellitus and diabetic complications.