The invention discloses a traditional Chinese medicine composition for whitening and wrinkle removal and a preparing method thereof. The traditional Chinese medicine composition comprises, by weight, 1 to 5 parts of root of red-rooted salvia, 1 to 5 parts of root of Angelica dahurica, 1 to 5 parts of red peony root, 1 to 5 parts of safflower, 1 to 4 parts of loofah sponge, 1 to 4 parts of nutgrass galingale rhizome, 1 to 4 parts of mulberry leaf, 1 to 4 parts of Indian bread, 1 to 3 parts of coix seed, 1 to 3 parts of white atractylodes rhizome, and 1 to 3 parts of white peony root. The components in the traditional Chinese medicine composition are collaboratively effective in harmonizing qi and blood, soothing liver and qi stagnation, and beautifying and removing wrinkles, skin symptoms can be significantly improved, and life quality of a patient is improved; the traditional Chinese medicine composition is effective in removing wrinkles for a young woman just bearing the wrinkles.