The invention provides a traditional Chinese medicine for treating diabetes, which is prepared by the following raw material drugs in portion by weight: 8 to 20 portions of radix codonopsitis, 12 to 36 portions of hoantchy root, 8 to 20 portions of Chinese yam, 12 to 28 portions of root of rehmannia, 12 to 26 portions of prepared rhizome of rehmannia, 8 to 18 portions of Gordon euryale seed, 4 to 12 portions of fragrant solomonseal rhizome, 6 to 18 portions of poria, 6 to 18 portions of Dendrobium nobile, 8 to 22 portions of dwarf lilyturf turber, 3 to 12 portions of sea dragon, 2 to 10 portions of cordyceps, 6 to 22 portions of kudzuvine root, 6 to 18 portions of milkwort, 5 to 18 portions of shelled cedar seed, 5 to 18 portions of jujube seed, 3 to 15 portions of bitter orange, and 3 to 15 portions of licorice. The traditional Chinese medicine has the efficacies of strengthening the spleen and reinforcing the kidney, nourishing Yin and tonifying Yang, nourishing the heart and tonifying Qi, and harmonizing five internal organs, has remarkable effect of preventing and treating heavy head, enervation, anaesthesia and complications caused by diabetes, has the advantages of reliable medicine effect, little side effect, wide adaptation diseases, convenient treatment, no easy relapse after healing and continuous use, and can gradually heal diabetes.