The invention discloses a traditional Chinese medicinal composition for treating hepatitis and a preparation method thereof. The traditional Chinese medicinal composition for treating the hepatitis is prepared from the following raw materials: pseudo-ginseng root, golden thread, baical skullcap root, amur corktree bark, rhubarb, spreading hedyotis herb, snake gall, borneol, calculus bovis factitius, aritificial musk, curcuma aromatica and red yeast. The traditional Chinese medicinal composition for treating the hepatitis can be prepared into multiple common formulations for oral administration. The traditional Chinese medicinal preparation treats the hepatitis by clearing heat, detoxicating, removing blood stasis, eliminating stagnation, invigorating blood circulation, dissolving stasis, detoxicating and normalizing gallbladder, has the obvious effects of improving liver function and inhibiting liver injury and hepatitis virus, addresses both symptoms and root causes, requires a short treatment period, realizes a low relapse rate, and has the obvious pharmacological action of protecting the liver and reducing transaminase and serum bilirubin.