The invention discloses a traditional Chinese medicine composition for clearing summer-heat, dispelling cold, stopping vomiting and relieving darrhea and a preparation method thereof, belonging to the field of modernization of traditional Chinese medicines. The active component of the traditional Chinese medicine composition is prepared from the following raw materials in parts by weight: 160 parts of patchouli, 160 parts of perilla leaf, 64 parts of elsholtzia, 24 parts of sandalwood, 50 parts of papaya, 250 parts of tuckahoe, 24 parts of cloven and 120 parts of licorice. The traditional Chinese medicine composition is characterized in that the preparation method of the reasonable and stable active component is obtained according to the research results of physicochemical properties and pharmacological actions of the components contained in the medicines. The medicine disclosed by the invention has the advantages of stable and controllable quality, obviously higher curative effect than the preparation formulations sold in the existing market, and smaller dose taken by the patient. The traditional Chinese medicine composition has obvious economic and social benefits.