The invention discloses a traditional Chinese medicine for treating ascites caused by cirrhosis and a preparation method thereof, and relates to the technical field of the traditional Chinese medicine. The traditional Chinese medicine is prepared from the following raw materials: bupleurum, gentiana macrophylla, fructus forsythia, radix isatidis, dahurian patrinia herb, paris polyphylla sm, cyrtomium rhizome, fructus aurantii, mangnolia officinalis, rhizoma cyperi, monkshood-tuber, medicated leaven, malt, salviae miltiorrhizae, curcuma aromatic, poria cocos, rhizoma alismatis, herba artemisiae scopariae, radix codonopsis, astragalus membranaceus, bighead atractylodes rhizome, rhizoma polygonati, liquorice, angelica sinensis, white peony root, polygonum multiflorum, Chinese yam, hedyotis diffusa, picrorhiza, dried radix rehmanniae, polygonum cuspidatum, schisandra chinensis and safflower. A bran-new traditional Chinese medicine and a preparation method thereof are provided for treatment of the ascites caused by cirrhosis. The traditional Chinese medicine can be used for clearing away heat and toxic materials, promoting blood circulation to remove blood stasis, soothing liver and dispelling melancholy, and invigorating the spleen and kidneys, has significant curative effects on treatment of liver ascites, liver cirrhosis and liver damage, and conversion from big 3 this world of hepatitis B into small 3 this world and intractable liver disease, is low in cost, good in curative effect, and simple and practicable in preparation process, and has good social and economic value.