The invention relates to a formula of a compound traditional Chinese medicine treating acute icteric hepatitis and a preparation method thereof. The Chinese medicinal preparation is characterized by being made by compatibility of chicory, Conyzae Herba, Aralia chinensis, Centella asiatica, Fructus Malvae, radix bupleuri, and radix paeoniae rubra according to certain proportion. The formula provided by the invention is novel, can reach a good effect on acute icteric hepatitis, and also can achieve the efficacy of clearing heat, promoting diuresis, removing jaundice and promoting liver function recovery. The traditional Chinese medicine prepared according to the formula provided by the invention can effectively improve the clinical symptoms of acute icteric hepatitis, enhance the quality of life of patients and slow the development of acute icteric hepatitis, and at the same time has the characteristics of good stability, high efficiency, quick effect, and low price, etc.