The present disclosure relates to a pharmaceutical composition for preventingandtreating senile dementia and preparation method thereof. The activeingredients of thepharmaceutical composition are prepared from raw medicinal materialscomprising 20-50parts by weight of Epimedii Folium and 15-55 parts by weight of Poria; or fromrawmedicinal materials comprising 20-50 parts by weight of Epimedii Folium, 15-55partsby weight of Poria and 10-55 parts by weight of Acanthopanax, or from rawmedicinalmaterials comprising 20-50 parts by weight of Epimedii Folium, 15-50 parts byweight ofPoria, 15-50 parts by weight of Acanthopanax and 6-15 parts by weight ofAnemarrhenaeRhizoma.