The invention discloses a Chinese medicine preparation for treating rheumatism, rheumatoid and ankylosing spondylitis and a preparation method thereof. The Chinese medicine preparation comprises the following components in parts by weight: stir-baked squama manitis, radix cyathulae, kadsura pepper stem, Sabia japonica, cortex illicii, Japanese Snailseed Root, prepared kusnezoff monkshood root, lithospermum, eucommia barks, red rice yeast, antler, pawpaw, fleece-flower root, cinnamon, radix clematidis, adenophora tetraphylla, processed rhizoma polygonati preparata, large-leaved gentian and white spirit. The preparation method comprises the following steps of: grinding the stir-baked squama manitis and the antler into medium particle sized powder, then adding the radix cyathulae, the kadsura pepper stem, the Sabia japonica, the cortex illicii, the Japanese Snailseed Root, the prepared kusnezoff monkshood root, the lithospermum, the eucommia barks, the red rice yeast, the pawpaw, the fleece-flower root, the cinnamon, the radix clematidis, the adenophora tetraphylla, the rhizoma polygonati preparata and the large-leaved gentian, then grinding to coarse powder and uniformly mixing, carrying out percolation, soaking for 5-7 days by taking the white spirit as a solvent, collecting a solution subjected to percolation, standing, filtering and subpackaging to obtain the Chinese medicine preparation. The Chinese medicine preparation has better treatment effects both on the active phase and the stable phase, is free from operation, fast in anti-inflammation, detumescence and effect taking, short in treatment course and simple and convenient to use and can be used for lightening the pain of patients.