The invention relates to a traditional Chinese medicine for treating liver cancer and a preparation method thereof, and belongs to the field of traditional Chinese medicines, the traditional Chinese medicine for treating liver cancer comprises the following components by weight: 2-8 parts of ginseng, 1-5 parts of patrinia herb, 1-8 parts of bombyx batryticatus, 1-8 parts of angelica, 2-6 parts of rhizoma alismatis, 1-4 parts of ganoderma lucidum, 1-3 parts of monkshood-tuber, 1-5 parts of pseudobulbus cremastrae seu pleiones, 1-4 parts of picrorhiza, 1-4 parts of hedyotis diffusa, 1-8 parts of herba houttuyniae, 1-4 parts of brucea javanica,1-8 parts of safflower carthamus, 1-5 parts of sculellaria barbata, 1-3 parts of astragalus, 3-5 parts of mangnolia officinalis, 1-7 parts of bupleurum, 1-5 parts of danshen, 1-4 parts of medlar, 1-7 parts of ligustrum, 2-4 parts of eclipta, 1-4 parts of schisandra, 1-5 parts of morinda officinalis, 1-6 parts of motherwort, 1-3 parts of polygonum multiflorum ,1-5 parts of polygonum cuspidatum, 1-6 parts of polyporus umbellatus, 2-7 parts of polygonatum, 1-5 parts of red peony, 1-4 parts of root peony peel, 1-8 parts of Chinese yam, 1-3 parts of caulis spatholobi, 1-3 parts of caulis spatholobi, 1-2 parts of hypericum japonicum, 1-8 parts of lithospermum, 1-8 parts of stringy stonecrop, 1-3 parts of placenta hominis and 1-9 parts of licorice, the traditional Chinese medicine has the effects of clearing away heat and toxic materials, promoting blood circulation to remove blood stasis, discharging liver and relieving depression, tonifying spleen and kidney, and inhibiting tumor growth.