The invention provides a medicine for curing insomnia and a preparation method thereof. The medicine contains natural vegetable drugs such as polygonum multiflorum, spina date seed, mulberry, lucid ganoderma, lily, rhizoma anemarrhenae, the root of red-rooted salvia, and the like. The medicine of the invention has the functions of tonifying the kidney, strengthening brain, nourishing heart, tonifying spleen, appetizing, invigorating the circulation of blood, regulating the functions of the five internal organs, and treating insomnia, amnesia, dizziness, fatigue, lumbar knee aching and limp.