The invention discloses a formula of an incised wound ointment, and a preparation method of the incised wound ointment, and relates to the field wound treatment medicines. The formula of the incised wound ointment comprises 5-10g of Cordyceps sinensis, 5-10g of wild Mythic Fungus, 5-10g of musk, 5-10g of dragon's blood, 2-5g of Herbal Ephedrae, 2-5g of Boswellia carteri, 5-10g of catechu, 5-10g of myrrh, 1-3g of ground beetle, 6-15g of Chinese angelica, 5-10g of Fructus Cnidii, 5-10g of processed Nux Vomica, 5-10g of Radix Aconiti Kusnezoffii Preparata and 5-10g of scorpion. The preparation method of the incised wound ointment comprises the following steps: crushing above traditional Chinese medicines by a crusher or milling with a stone to form powder, carrying out coarse mesh filtration, carrying out fine mesh filtration, crushing to form powder, and boiling in a copper pot by using a copper soon with slow fire to prepare an ointment. The incised wound ointment is suitable for of blood wounds, bullet wounds, cut wounds, operation wound non-healing, diabetic feet, bedsores, burns, scalds, contusions and the like, is in favor of dredging channels and collaterals, reconstructing cells, regenerating fertile soil and multiplying the human body regeneration capability.