The invention discloses a traditional Chinese medicine composition with qi invigorating and lung moistening functions and a preparation method and an application thereof. The effective ingredients of the traditional Chinese medicine composition are prepared by the following raw materials in parts by weight: 8 to 18 parts of ginseng, 7 to 17 parts of radix polygonati officinalis, 6 to 15 parts of date, 6 to 15 parts of boat-fruited scaphium seed, and 2 to 8 parts of locorice root. The preparation method comprises the following steps of crushing the raw materials, and extracting by a water decoction method, an ethanol refluxing method or an ethanol percolation method; or directly crushing the raw materials. The traditional Chinese medicine composition has the advantages that the good qi invigorating and lung moistening functions are realized, and the sub-acute cough can be treated; the preparation method is simple, the operation is easy, and the preparation method is suitable for large-scale industrial production.