A traditional Chinese medicine composition for treating psoriasis and applications thereof. The traditional Chinese medicine composition is prepared from the following raw materials in parts by weight: 5 to 15 parts of radix paeoniae rubra, 3 to 9 parts of curcuma zedoary, 10 to 20 parts of glabrous sarcandra herb, 10 to 20 parts of rhizoma smilacis glabrae, and 5 to 15 parts of dark plum. The traditional Chinese medicine composition can treat psoriasis and can reduce occurrence of complications thereof, such as cardiovascular events, psoriasis arthropathica and diabetes.