The invention discloses a medicine for treating fracture of the femoral shaft and a preparation method thereof. The medicine comprises the following raw medicinal materials: Chinese angelica, adhatoda ventricosa, root of common peony, asiatic toddalia root, dried rehamnnia root, rubia yunnanensis, rhizoma drynariae, circium japonicum, native copper, olibanum, cortex lycii radicis, myrrh, elderberry, hematoxylon, asplenium varians wall., caulis spatholobi, radix astragali preparata, madder, eucommia ulmoides, rhizoma sparganii, the seed of Chinese dodder, ixora chinensis, cutch, lamiophlomis rotata, giant knot weed, pig marrow, fir club moss and sea-buckthorn. The medicine for treating the fracture of the femoral shaft has the beneficial effects that the medicine has the effects of invigorating blood and generating new blood, setting broken bones and connecting tendons, promoting circulation and removing stasis, and replenishing essence and generating marrow; the medicine is mainly used for treating the femoral fracture in the middle period after the operation; the medicine has the advantages of rapid effect, high efficiency, accurate curative effect, short course of treatment, zero toxic side effect, low cost, and the like.