This invention relates to the preparation of the Polygonum capitatum extract and its application and preparation containing the Polygonum capitatum extract thereof, belonging to the technical field of Traditional Chinese Medicine. The Polygonum capitatum extract is prepared by the following steps: take the dried Polygonum capitatum, add the 55˜65% ethanol to the dried Polygonum capitatum, soak and extract via reflux, and filter and concentrate it to get the concentrate alcohol extract The drug residue after the alcohol extraction shall be decocted in water, filter and concentrate the water extract, to get the concentrated water extract merge the concentrated alcohol extract and the concentrated water extract liquid, then concentrate the mixture to obtain the Polygonum capitatum extract. The Polygonum capitatum extract can be made into tablets, capsules, granules and oral liquid.