The invention discloses a traditional Chinese medicinal composition for treating insomnia. The traditional Chinese medicinal composition for treating insomnia comprises the following components by weight: 45-55 parts of Radix Paeoniae Alba, 45-55 parts of semen zizyphi spinosae, 45-55 parts of lily, 45-55 parts of rose, 55-65 parts of tuber fleeceflower stem, 25-35 parts of evodia rutaecarpa, 5-15 parts of dried ginger, 5-15 parts of borneol and 5-15 parts of cinnamon. The invention also discloses a preparation method of the above traditional Chinese medicinal composition for treating insomnia. The traditional Chinese medicinal composition for the treating insomnia has the advantages of low cost, exact curative effect and fast effectiveness, and can achieve radical curative effect.