The invention discloses ointment for clearing heat, cooling blood, stopping bleeding, diminishing swelling and promoting wound healing and a preparation method thereof. The ointment is prepared from the following raw materials: rheum officinale, rhizoma coptidis, radix notoginseng, radix angelicae dahuricae, colla corii asini, calcined dragon bones, rhizoma bletillae, myrrh, cuttlebone, radix rubiae, dragon's blood, pearl, borneol and liquorice roots. The ointment has very good curative effects on various skin trauma bleeding, ulcer, ulceration and the like, the treatment period is short, andthe pain and economic burden of a patient are greatly reduced. The ointment directly acts on an affected part, improves the absorption efficiency of medicines, promotes rapid healing of bleeding points and ulcer surfaces, has the advantages of rapid curative effect, short course of treatment, pure traditional Chinese medicine preparation, no toxic or side effect, wide and easily available medicinesource, convenient application, external application to the affected part, small dosage, no pain and no recurrence after healing.