The invention relates to a traditional Chinese medicine composition for treating phlegm-damp impeding fatty liver. The traditional Chinese medicine composition comprises the following raw material medicines: 5-20 parts of kelp, 5-20 parts of semen cassia, 3-15 parts of rhizoma picrorhizae, 5-20 parts of concha haliotidis, 5-20 parts of concha arcae, 5-20 parts of clam shell, 5-20 parts of oyster, 3-15 parts of cooked rhubarb, 5-20 parts of hawthorn, 3-15 parts of rhizoma alismatis, and 3-15 parts of liquorice. The traditional Chinese medicine composition has effects of reducing phlegm and resolving masses, removing heat from the liver and clearing damp, and is main used for treating phlegm-damp impeding fatty liver caused by various reasons.