The invention provides traditional Chinese medicinal composition for treating diabetes. The traditional Chinese medicinal composition is prepared from the following medicinal raw materials in parts by weight: 3-10 parts of rhizoma atractylodis, 9-30 parts of coix seed, 3-6 parts of fructus amomi, 3-15 parts of fingered citron, 9-15 parts of kudzu vine root, 3-15 parts of cortex lycii radicis, 5-15 parts of mulberry leaf, 6-15 parts of glossy privet fruit, 5-15 parts of perilla seed, 5-15 parts of stiff silkworm, 3-15 parts of citron, 3-10 parts of dried orange peel, 6-15 parts of lily, 10-15 parts of hawthorn, 1-5 parts of cinnamon, 9-15 parts of poria cocos, 3-6 parts of fennel, 6-15 parts of radix ophiopogonis, 9-15 parts of gorgon euryale seed, 6-15 parts of date, 10-15 parts of malt, 6-15 parts of polygonatum odoratum and 6-10 parts of mantis egg-case.