The invention discloses a yang invigorating capsule for treating kidney yang deficiency and a preparation method thereof. Based on weight parts, the capsule is prepared by 140-160 parts of centipede powder, 140-150 parts of epimedium herb extract, 60-70 parts of licorice root extract, 17-19 parts of royal jelly and proper auxiliary materials. The yang invigorating capsule is a novel Chinese medicine preparation which can be used for treating erectile disorder and premature ejaculation caused by kidney yang deficiency, and is the improved preparation of the traditional yang invigorating tablet. Through preparing the traditional yang invigorating tablet into the capsule, the invention has the advantages that the curative effect is improved, the effect can be obtained quickly, the bioavailability is high, the curative effect is good and the use of patients is convenient; and the production process is simple and convenient, the product quality can be conveniently controlled, the stability is good, the safety is high, the curative effect of the prepared yang invigorating capsule is exact, the taking is convenient and the needs of the vast patients are satisfied.