The invention relates to a Chinese medicinal preparation, in particular to a Chinese medicinal composition for treating insomnia and a preparation method thereof. The Chinese medicinal composition is characterized in that: the Chinese medicinal composition is prepared from the following Chinese medicinal raw material medicaments in part by weight: 3 to 15 parts of cicada slough, 10 to 20 parts of stir-fried spina date seed, 3 to 10 parts of liquoric root and 10 to 15 parts of raw barley sprout. The Chinese medicinal composition is prepared by the following steps of: weighing the raw materials in the part by weight; mixing the cicada slough, the stir-fried spina date seed, the liquoric root and the raw barley sprout; adding water in an amount which is eight times that of the mixture to decoct twice; decocting for 2 hours every time; filtering the mixture in parts; merging filter liquors; heating the filter liquors to the temperature of between 50 and 70 DEG C; concentrating the filter liquors until the filter liquors become a thick paste with the relative density between 1.10 and 1.30; drying the thick paste in an electric oven; and crushing, uniformly mixing, granulating, drying and packing the thick paste. The prepared Chinese medicinal composition has the advantages of good curative effect, quick response, no toxic or side effects, low price, and simple and feasible preparation method and process.