The present invention relates to a traditional Chinese medicine composition for treating hair loss, and a preparation method and an application thereof, and belongs to the technical field of traditional Chinese medicine. Active ingredients of the traditional Chinese medicine composition comprise the following raw materials in parts by weight: 7-11 parts of cordyceps militaris, 7-11 parts of ginkgoleaves, 5-7 parts of peach kernels, 5-7 parts of safflower, 5-7 Chinese arborvitae twigs, 5-7 parts of herba portulacae, 2-4 parts of tribulus terrester fruits and 2-4 parts of radix sophorae flavescentis. The composition can be prepared as a tincture for external applying, is made of the pure traditional Chinese medicines as raw materials by scientific compatibility, elegant and gentle in formula, and simple and easy to implement in manufacture, mainly treats kidney deficiency, accessorily treats blood heat, blood stasis, damp heat, external wind and insects, conducts both tonification and purgation, and has effects of supplementing kidneys, promoting blood circulation, cooling blood, eliminating dampness, expelling wind and killing insects, is dialectical in compatibility, dilates capillaries of the head, is precise in curative effect and free of toxic and side effects, and can effectively treat seborrheic hair loss.