A drug composition for treating chronic liver diseases, consists of: Astragalus Astragalosides and Glycyrrhiza Acid by weight ratio of 3˜6:1. By testing and validating with classic animal model, the results confirmed that the drug composition of the present invention can significantly reduce the collagen content of rat liver, and reduce liver fibrosis and liver injury, wherein the effect is better than the effect of each component alone. The drug composition of the two components or ingredients can improve the anti-hepatic fibrosis, effectively prevent liver fibrosis and promote the development of liver fibrosis reversal, and thus can be used for the treatment and prevention of various chronic hepatitis, liver fibrosis, cirrhosis and other illnesses.