The invention provides traditional Chinese medicine paste for regenerating tissues to heal wound. The traditional Chinese medicine paste is prepared from, by weight, 8-15 parts of calomel, 15-25 parts of frankincense, 18-23 parts of myrrh, 3-7 parts of cutch, 20-30 parts of sanguis draxonis, 80-120 parts of plumbum rubrum, 45-60 parts of cera flava, 25-40 parts of hair, 15-30 parts of periostracum serpentis, 300-650 parts of sesame oil, 0.5-2 parts of musk and 5-15 parts of borneol. Purposes of the traditional Chinese medicine paste can be further achieved through a preparation method of the traditional Chinese medicine paste, the traditional Chinese medicine raw materials including the periostracum serpentis and the hair are fried with the sesame oil, medicinal oil with slag removed is filtered, a product is subjected to high temperature treatment with the plumbum rubrum and the cera flava, black unguent is obtained, the unguent is then mixed with a certain proportion of the calomel, the frankincense, the myrrh, the cutch and the sanguis draxonis, and the paste is obtained. The obtained paste is quick in effect, convenient to use and capable of obviously promoting healing of skin wound, reducing generation of scars and improving healing quality.