The invention relates to a compound traditional Chinese medicine preparation for remedying and improving insomnia symptoms and a preparation method thereof. The compound traditional Chinese medicine preparation is made from the raw materials with the following effective constituents of sang, keel, albizzia julibrissin durazz, salvia, radix scrophulariae, oyster, baked licorice, rush, schisandra, olibanum, uncaria, polygala, cornus officinalis, Fushen, angelica, cedar seed, caulis polygoni multiflori, liriope, longan pulp and radix rehmanniae. The compound Chinese medicine preparation has the following preparation method: the raw materials are mixed in proportion, after the mixture becomes into the clear paste by being processed adding water, decocting, filtering and condensing, microcrystalline cellulose, starch, sodium carboxy methyl starch and 75 percent of ethanol are added, and then the procedures of granulating, drying, graining and packaging into the capsule are processed, and at last the medicine is made. The compound Chinese medicine preparation has the advantages of reasonable compositions, convenient usage, simple preparation process, low cost and so on, which is suitable to be used for remedying and improving the symptoms of insomnia, depression, anxiety, amnesia, neurasthenia and so on caused by various causes.