An herbal composition comprises an extract of Radix Rehmanniae, and an extract of Poria, Ganoderma Lucidum, Semen Ziziphi Spinosae, Semen Platycladi, Radix Rehmanniae Praeparata, Radix Angelicae Sinensis, Radix Et Rhizoma Salviae Miltiorrhizae, Rhizoma Chuanxiong, Rhizoma Atractylodis Macrocephalae, Fructus Gardeniae, Cortex Moutan, Radix Bupleuri, Radix Paeoniae Alba, Rhizoma Cyperi, Pericarpium Citri Reticulatae, Fructus Aurantii, Radix Glycyrrhizae, and Os Draconis. The herbal composition is prepared by separately extracting Radix Rehmanniae, and the remaining herbs. The composition is suitable for treatment of insomnia and other related disorders.