The invention discloses a novel Chinese medicinal composition for treating cirrhosis and a preparation method thereof. The Chinese medicinal composition mainly comprises the following raw materials: dragon's blood, pangolin scales, rhizome of chuanxiong, red peony root, white peony root, poria, bighead atractylodes rhizome, peach kernel, safflower, glossy ganoderma, dragon's blood, rhizoma corydalis, Chinese angelica, rhizoma sparganii, curcuma zedoary, dried orange peel, immature bitter orange, rhubarb, ginseng, raw astragalus, prepared rehmannia, kudzu vine root, tortoise-plastron glue, cornu cervi degelatinatum, turtle carapace glue, raw rehmannia, figwort, dogwood, three-nerved spicebush root, bitter orange, nutgrass galingale rhizome, dried orange peel, costustoot, agilawood, bark of magnolia, fructus evodiae, longstamen onion bulb and aspongopus. The Chinese medicinal composition can be prepared into any common oral preparation according to the conventional Chinese medicinal preparation. The composition can treat patients with the main symptoms of weakness, anorexia and indigestion, and the symptoms of naupathia, oil disgust, abdominal flatulence, epigastric discomfort, dull pain and diarrhea, poor general condition and nutrition condition, weight loss and weakness, and lassitude and the patients who are bedridden due to weakness and have the accompanying symptoms of dry and rough skin, pale and dark face, anemia, glossitis, angular stomatitis, night blindness, polyneuritis, edema, water and electrolyte disorders, portal hypertension and the like. The Chinese medicinal composition has the advantages of exact clinical curative effect, remarkable curative effect and quick response, and also has the advantages of low cost, no toxic or side effect basically and the like because the Chinese medicinal composition is combined by adopting medicinal and edible medicaments formulated by National Formulary basically.