The invention discloses a traditional Chinese medicine composition for treating stains and verrucous nevi and a preparing method thereof, and belongs to the technical field of preparation of medicine.The traditional Chinese medicine composition is prepared from, by weight, 3-8 parts of radix angelicae, 15-25 parts of semen coicis, 2-5 parts of herba taraxaci, 2-6 parts of rhizoma atractylodis, 3-6 parts of powder of cornu bubali, 1-8 parts of semen euphorbiae lathyridis, 1-4 parts of tea tree oil, 3-12 parts of oleum fructus bruceae, 5-8 parts of ethyl alcohol, 4-9 parts of glutinous rice flour, 3-4 parts of sodium carbonate, 3-4 parts of calcium hydroxide, 2-5 parts of medical talc powder and 3-8 parts of pearl powder. Main traditional Chinese medicinal materials are cooperative with oneanother and jointly achieve the effects of reliving internal heat or fever, removing blood stasis and disintegrating masses, stopping bleeding by astringency, and relieving internal heat or fever forpromoting tissue regeneration; the composition quickly penetrates through the skin and goes deep into the cells of a part which needs to be subjected to symptom removal, stops the lesions, supplies nutrients to the cells, and kills the lesion cells, and the purposes of removing skin stains and warts like moles are achieved; meanwhile, the traditional Chinese medicine composition can effectively relieve edema or abdominal distension, swelling and pain, and prevent the skin from being infected and festered, and thus it is prevented that scars are not left on the skin after stains and verrucousnevi are cured.