A traditional Chinese medicine composition for treating liver cancer and preventing postoperative recurrence thereof. The composition consists of 5-20 parts of Phyllanthus Urinaria, 2-8 parts of Coriolus Versicolor, 1-5 parts of Salvia Miltiorrhiza, and 1-5 parts of Arnebiae Radix. The traditional Chinese medicine composition can be further combined with 5-FU to prepare a medicine for treating liver cancer or preventing postoperative recurrence thereof.