The invention relates to a traditional Chinese medicine preparation for treating burns and scalds through external application and a preparation method of the traditional Chinese medicine preparation, and belongs to the technical field of traditional Chinese medicines. The traditional Chinese medicine preparation is prepared from the following Chinese medical herbs: snakegourd fruits, dried alum, angelica dahurica, agastache, radix paeoniae rubra, pearls, astragalus membranaceus, almonds, groundsel, olibanum, borneol, angelica, cattail pollen, fructus forsythiae, Szechuan lovage rhizome, musk, phellodendron amurense and balm. The traditional Chinese medicine preparation is mainly used for treating the burns and scalds, and has the obvious technological advantages that the painkilling effect is instant, no blister is generated, the wound healing is rapid, and small scars are left after the burns and scalds are cured; besides, the traditional Chinese medicine preparation is stable in medicinal efficacy, simple, convenient and feasible in preparation process, and suitable for industrial mass production.