The invention discloses a method for preparing a Chinese medicine used for mainly treating retracted testis, which comprises the following raw materials in part by weight: 10 to 120 parts of chinaberry seeds, 5 to 45 parts of crotons and 1 to 35 parts of Chinese blister beetles. The preparation method comprises: removing sees and skin of chinaberry seeds chinaberry seeds and obtaining pulp of chinaberry seeds; dividing the pulp into two parts, mixing one part of pulp with crotons which are seeds obtained by removing shells and mixing the other part of pulp with Chinese blister beetles; addingsalt water repeatedly, drying in an oven, removing the crotons and Chinese blister beetles; and uniformly mixing the dried chinaberry seeds and thus obtaining the Chinese medicine used for mainly treating retracted testis. The preparation method of the medicine is simple, and the Chinese medicine is mainly used for treating retracted testis, scrotal distension, koro syndrome, yin qi disease and the like. Compared with common surgical treatment, the treatment by the Chinese medicine has the advantages of painlessness, low cost, obvious treatment effect, high safety and no toxic or side effects.