The invention discloses a medicine for relieving alcohol toxicity and a preparation method thereof, and belongs to functional health foods. The medicine is a product of submerged fermentation of black fungus mycelium liquid. A culture medium for submerged fermentation is prepared from water extracts of the following crude traditional Chinese medicines in part by weight: 3 to 8 parts of root of kudzuvine, 3 to 8 parts of flower of kudzuvine, 1 to 3 parts of rice bean, 1 to 3 parts of flower of rice bean, and 1 to 3 parts of Japanese balanophora, wherein a weight ratio of the crude medicines to the water extracts is 10-20 percent the submerged fermentation time is 72 to 114 hours and the inoculation amount of the black fungus mycelium liquid in the water extracts is 5-15 percent (V/V). The medicine can quickly relieve alcohol toxicity, has small side effect, and can protect liver, kidney and intestines and stomach and relieve the suppression of alcohol on cerebral cortex.