The invention discloses a traditional Chinese medicine composition with antibacterial and anti-inflammation functions. The traditional Chinese medicine composition is prepared from, by weight, 35-50 parts of radix paeoniae alba, 10-22 parts of radix glycyrrhizae, 5-10 parts of herba rabdosiae rubescentis and 20-35 parts of folium microcotis. A preparation of the traditional Chinese medicine composition with the antibacterial and anti-inflammation functions includes: mixing and grinding the components, heating and extracting with distilled water, performing vacuum filtration to obtain a medicinal extract solution, using AB-8 macroporous adsorption resin for separating and purifying the medicinal extract solution to obtain medicinal purified solution, and subjecting eluent to activated carbon decolorization, condensation and spray drying to obtain the traditional Chinese medicine composition with the antibacterial and anti-inflammation functions. The traditional Chinese medicine composition has excellent antibacterial and anti-inflammation functions.