The invention provides a Chinese medical composition for treating osteoporosis and a granular formulation. The Chinese medical composition is prepared from the following components in parts by mass: 5-8 parts of rehmannia glutinosa, 2-5 parts of eucommia bark, 5-8 parts of aconite, 2-5 parts of medlar, 3-5 parts of cinnamon, 1-3 parts of dogwood, 3-5 parts of peach kernel, 1-3 parts of safflower,2-5 parts of yam and 3-5 parts of liquorice. The invention has the advantages that the Chinese medical composition for treating osteoporosis and the Chinese medical granular formulation prepared by utilizing the composition, i.e., the granular formulation capable of tonifying kidney and invigorating blood circulation can greatly extract pharmaceutical active ingredients and improve the drug effect; in addition, a multi-component multi-index quality control system is established to the preparation, which more accords with a Chinese medical whole action theory, provides a scientific reference for the stable and controllable quality of the osteoporosis and ensures the safety and the effect of clinical application.