The invention relates to a traditional Chinese medicine for relieving cough and reducing sputum and a preparation method of the traditional Chinese medicine. The preparation method comprises the steps of preparing platycodon grandiflorum, rhizoma anemarrhenae, radix peucedani, pericarpium citri reticulatae, rheum officinale, liquorice, bulbus fritillariae cirrhosae, gypsum, semen armeniacae amarum, folium perillae, semen lepidii, flos farfarae, radix stemonae, radix scrophulariae, radix ophiopogonis, flos buddlejae, radix asparagi, fructus schisandrae chinensis, fructus aurantii, semen trichosanthis, rhizoma pinelliae, radix aucklandiae, fructus aristolochiae, folium mori and pericarpium papaveris in parts by weight to achieve an optimization purpose, and carrying out dipping, extraction, decoction, concentration and filtering, so as to prepare cough-relieving and sputum-reducing particles. By virtue of mutual matching of the raw materials, the traditional Chinese medicine has the efficacies of eliminating dampness and phlegm, dispelling wind and heat, promote the secretion of saliva or body fluid, relieving cough and asthma and relaxing bowel, is mainly used for treating diseases including cough, excessive phlegm, asthma, swollen sore throat, lung heat, phlegm stagnation and yellow, thick sticky phlegm, can be well absorbed, does not easily develop drug resistance and has no toxic or side effects.