The invention discloses a traditional Chinese medicine composition for treating reflux esophagitis and a preparation method of a granule formulation thereof. The traditional Chinese medicine composition is composed of 19 traditional Chinese medicine including cowherb seeds, radix clematidis, earthworm, angelica, radix bupleuri, officinal magnolis flowers, ligusticum wallichii, rhizoma corydalis, tangerine peels, cuttle bones, bulbs of thunberg fritillary, coptis, fructus evodiae, yam, poria cocos, rhizoma atractylodis, dendrobe, bletilla and liquorice. The preparation method includes taking the 19 traditional Chinese medicine as main drugs, and taking sucrose and dextrin as excipient. The cowherb seeds which are a drug for activating blood circulation, diminishing swelling and promoting lactation, the radix clematidis which is a drug for rheumatism and the earthworm which is a decoction of medicinal insects are creatively taken as the main drugs to prepare the traditional Chinese medicine composition, so that conventional drugs are challenged and creatively applied, and treatment effect is greatly improved.