The invention relates to a traditional Chinese medicine for curing burns, scalds and chronic fester and a preparation method thereof, belonging to the technical fields of a drug for curing burns, scalds and chronic fester and a preparation method thereof. The traditional Chinese medicine is prepared from the raw materials of 200-300 parts of lithospermum, 80-120 parts of Chinese angelica, 60-80 parts of radix angelicae, 300-500 parts of raw sanguisorba, 2000-3000 parts of sesame oil and 100-150 parts of Chinese wax. The preparation method comprises the following steps: 1) cleaning the raw materials, and removing impurities; 2) grinding the lithospermum, the Chinese angelica, the radix angelicae and the raw sanguisorba into fine powder, and filtering by a 300-meshed sieve; 3) pouring the powdery medicine into the sesame, and decocting for 1-3 hours until the powdery medicine becomes brown, adding the Chinese wax, heating while stirring, and boiling for 1-3 hours; and 4) naturally cooling the boiled liquor. The traditional Chinese medicine has the effective rate up to 100%, the recovery rate up to over 97% and good curative effect.