The invention provides a Chinese herbal preparation for treating breast disease and a preparation method thereof. The preparation method comprises the following steps: after cleaned, live earthworm is placed into a treatment fluid formed by a decoction of Scutellaria baicalensis, rheum officinale and licorice so as to undergo soaking treatment the live earthworm which has undergone soaking treatment undergoes airing to remove moisture on body surface and is fed with a mixture of white sugar, alga and licorice for isophagy so as to form earthworm bloody pulp a mixture of alga, laminaria japonica and the earthworm bloody pulp undergoes homogenization to obtain fluid earthworm bloody pulp and the Chinese herbal preparation is prepared. The invention also provides a Chinese herbal preparation for treating breast disease. The Chinese herbal preparation for treating breast disease can be used to effectively cure breast disease and especially has a good effect of treating diseases such as hyperplasia of mammary glands, breast nodule, breast mass and the like, and effective rate of the Chinese herbal preparation reaches more than 98%.
