A traditional Chinese medicine formula for treating rheumatic arthritis is characterized by comprising the following ingredients: 30g mulberry twigs, 12g cortex erythrinae, 12g radix saposhnikoviae, 12g radix gentianae macrophyllae, 30g semen coicis, 12g cortex acanthopanacis, 20g radix astragali, 12g rhizoma et radix notopterygii, 12g radix angelicae pubescentis, 9g cassia twigs, 12g rhizoma atractylodis, 9g radix angelicae sinensis, 9g radix aconiti, 9g radix aconiti agrestis, 9g turmeric, 15g radix clematidis, 15g olibanum, 15g myrrh, 3 centipedes, 6g whole worm, 10g lumbricus, 15g zaocys dhumnade and 6g nidus vespae. A preparation and administration method comprises the steps of decocting 30g mulberry twigs, 12g cortex erythrinae, 12g radix saposhnikoviae, 12g radix gentianae macrophyllae, 30g semen coicis, 12g cortex acanthopanacis, 20g radix astragali, 12g rhizoma et radix notopterygii, 12g radix angelicae pubescentis, 9g cassia twigs, 12g rhizoma atractylodis, 9g radix angelicae sinensis, 9g radix aconiti, 9g radix aconiti agrestis, 9g turmeric, 15g radix clematidis, 15g olibanum and 15g myrrh in water for oral administration, decocting to 400ml for twice, 200ml each time, adding fine powder of 3 centipedes, 6g whole worm, 10g lumbricus, 15g zaocys dhumnade and 6g nidus vespae, taking for twice per day after a meal, one dose every two days. A treatment course is 5 weeks. The formula solves the problem that the existing treatment manner takes effect slowly, and is applicable to treatment of the rheumatic arthritis.