A compound composition for improving bone health and preparation and application thereof are provided. The compound composition is prepared by combining a traditional Chinese medicine extract with chicken cartilage collagen, magnesium, vitamin K2 and vitamin D3. The compound composition overcomes the food safety risk of the existing osteoporosis preventive drugs by adding the traditional Chinese medicine extract for improving osteoporosis and promoting bone health. And the compound composition disclosed can be used as a dietary supplement or health food raw material for preventing or treating osteoporosis. Therefore, the compound composition disclosed is suitable for promotion and application.