The invention discloses an antidandruff and antipruritic traditional Chinese medicine composition and its application and preparation method and belongs to the field of daily chemical articles. The traditional Chinese medicine composition comprises the following ingredients, by weight, 50-58% of an extract of artemisia argyi, 10-20% of an angelica root extract, 5-10% of an extract of angelica sinensis, 5-10% of a cnidium monnieri extract, 10-15% of a gallnut extract, 5-20% of an extract of radix sophorai flavescentis, 1-5% of an extract of Ligusticum wallichii, 5-15% of an extract of semen cuscutae and 1-10% of a desert cistanche extract. Through synergistic compounding of above ingredients, the traditional Chinese medicine composition can help balance scalp oil secretion and recover scalp metabolism, has effects of sterilizing and relieving itching, removing dandruff and controlling oil, promoting blood circulation to arrest pain, protecting hair and preventing hair loss, is safe, has no side effect, and has a function of promoting hair growth.