The invention relates to a traditional Chinese compound preparation which is prepared from the following components as bulk drugs in parts by weight: 1-20 parts of Chinese date, 1-20 parts of yam, 1-10 parts of hawthorn, 1-10 parts of sarcodactylis, 1-10 parts of corn stigma and 1-10 parts of lotus leaf. The invention also discloses a preparation method of the traditional Chinese compound preparation. The traditional Chinese compound preparation disclosed by the invention has the efficacies of strengthening spleen and soothing liver. Confirmed by clinical application and pharmacological research for multiple years, the traditional Chinese compound preparation can be used for treating precancerous lesions of liver cancer, including viral hepatitis, liver cirrhosis and liver fibrosis as well as retarding and preventing the development of the precancerous lesions of the liver cancer to the liver cancer. The traditional Chinese compound preparation has the advantages of define curative effect, no toxic or side effect and low cost.