The invention discloses a traditional Chinese medicine preparation for treating femoral head necrosis and a preparation method thereof. The traditional Chinese medicine preparation comprises the following components in parts by weight: 10-20 parts of angelica, 10-20 parts of rhizoma ligustici wallichii, 10-15 parts of red peony root, 10-15 parts of white peony root, 10-12 parts of prepared rehmannia root, 10-12 parts of safflower, 10-15 parts of radix achyranthis bidentatae, 1-6 parts of radix aconiti, 10-15 parts of Chinese dodder seed, 10-15 parts of radix codonopsis pilosulae, 10-30 parts of astragalus root, 10-15 parts of radix dipsaci from Sichuan of China, 10-15 parts of corydalis tuber, 2-5 parts of centipede, 1-10 parts of deerhorn gelatin and 1-10 parts of licorice. The inventionadopts traditional Chinese medicines which have the functions of tonifying the kidney, strengthening bone, promoting blood circulation and relieving the stasis of blood and have a certain curative effect to the femoral head necrosis, improves the blood supply dysfunction of the local artery of the femoral head necrosis, reinforces the local blood flow, promotes the regenerative formation of bone trabecula, reduces the saccular change, enhances the bone absorption, restores a cartilage position, smoothes blood vessels and recovers muscular atrophy.