A Chinese traditional medicine composition for prevention and treatment of avian influenza is provided. Its activated ingredients are consisted of: herba houttuyniae 21.4 wt. %, Caulis lonicerae japonicae 17.9 wt. %, radix isatidis 14.3 wt. %, male fern rhizome 10.7 wt. %, radix et rhizoma sophorae tonkinensis 7.1 wt. %, radix angelicae dahuricae 7.1 wt. %, rhizoma paridis 7.l wt. %, herba artemisiae annuae 7.2 wt. %, and rhizoma iridis tectoris 7.2 wt. %. This Chinese traditional medicine composition could be made into any regular medicinal types, for example, oral solutions, tablets, capsules, pellets and injection solution, etc. Modified preparation methods for this Chinese traditional medicine composition, as well as the use of the same in preparation of medicines and health foods for prevention or treatment of avian influenza were also provided in present invention. This Chinese traditional medicine composition could effectively prevent and treat avian influenza. It was a safer, more easily-obtained, and inexpensive anti-avian influenza drug.