The present invention relates to a medical herb composition for reducing shedding of mammal hair and a method for preparing the same. The medical herb composition comprises: a first herb material selected from the group consisting of Ginseng Radix, Astragali Radix, Batatatis Rhizoma, Zizyphi Fructus, Tremella, Codonopsis Pilosula, or the combination thereof; a second herb material selected from the group consisting of Angelicae Radix, Rehmanniae Preparata Radix, Longanae Arillus, Lycii Fructus, Paeonia lactiflora, or the combination thereof; and a third herb material selected from the group consisting of Rehmanniae Radix, Ligustrum Lucidum, Eclipta prostrata, Dendrobium hancockii, Polygonum multiflorun (i.e. Dioscorea bulbifera or Cynanchum wilfordi), or the combination thereof. The medical herb composition of the present invention can reduce shedding of mammal hair, promote the growth of hair, and also can efficiently improve vitality, skin condition, and complexion.