The invention discloses a Chinese medicinal composition for treating delayed healing and nonunion of fracture and a preparation method and application thereof. The Chinese medicinal composition is prepared by taking astragalus and codonopsis pilosula as monarchs, taking prepared rehmannia root, dogwood, deer-horn glue, himalayan teasel root and cassia bark as ministers, taking white paeony root, Chinese angelica, ground beetle, suberect spatholobus stem and bitter orange as auxiliary materials and blending the medicinal materials by using liquoric root, wherein astragalus and codonopsis pilosula have the effects of invigorating spleen and tonifying kidney, reinforcing qi and nourishing blood; prepared rehmannia root, dogwood, deer-horn glue, himalayan teasel root and cassia bark have the effects of reinforcing kidney to replenish essence, and regeneration of new bones can be promoted by reinforcing kidney according to the principle of kidney governing bones to generate marrow so as to promote early healing of fracture; white paeony root, Chinese angelica, ground beetle and suberect spatholobus stem have the effects of replenishing and harmonizing blood, dispelling stasis and dredging collaterals, and bitter orange has the effect of promoting the circulation of qi. As proved by clinical test, the Chinese medicinal composition is beneficial to the growth of bones, and an ideal treatment effect on delayed healing and nonunion of fracture is achieved.