A functional traditional Chinese medicinal stock shampoo is characterized in that the preparation method of the shampoo comprises the following steps: processing Chinese Taxillus Twig, White Mulberry Root-bark, Fructus Gardeniae, Cortex Moutan, Yerbadetajo Herb, Rubia cordifolia, Artemisia argyi, Millettia dielsiana, Sophora flavescens, honeysuckle flower, Herba Taraxaci, Hedyotis diffusa, Crocus sativus, Viciaamoena Fisch, Cortex Dictamni, mulberry fruit, Syzygium aromaticum, dry ginger and ginseng which have specific-range parts of the total weight of the raw materials for preparing a medicinal wine to prepare a medicinal wine extract liquid; mixing the medicinal wine extract liquid with a Sapindus mukurossi Gaertn and Gleditsia sinensis Lam boiling extract liquid to obtain a mixture; and mixing the mixture with a certain amount of an alanine surfactant, a certain amount of cocoamidopropyl betaine and a certain amount of camellia seed oil to prepare the functional traditional Chinese medicine stock shampoo. The invention also provides the preparation method of the functional traditional Chinese medicinal stock shampoo. The functional traditional Chinese medicinal stock shampoo can effectively prevent and control alopecia, and has the efficacies of dandruff removal, heat itch stopping, superfluous hair oil removal, hair growth assisting, hair blackening, and hair caring.