A data collection system for a traditional Chinese medicine production device and the working method thereof, which is characterized in that a relevant monitoring device is respectively arranged on each unit equipment and process pipelines of the traditional Chinese medicine production device; each relevant monitoring device for collecting on-site real-time data is connected with a central control room; computer analysis equipment and assistant working equipment are arranged in the central control room; a warning signal used for indicating the production equipment and the process pipelines to fail and an informing feedback device for maintenance solutions are arranged among the central control room and each unit equipment and the process pipelines of the traditional Chinese medicine production device. The invention has the advantages that each true and effective on-site data is provided for managers to effectively and conveniently manage, and has functions of instruction, reminding and warning when monitoring, supervision and cost management are conducted in the production processes that the system conducts extraction, concentration, ethanol precipitating, rectifying, and drying to materials of plant type, thereby achieving the purposes of improving product quality, reducing production cost and improving work efficiency.