The invention provides a medicine for repairing skin injuries and a preparation method thereof. The medicine is prepared from, by weight, 0.01-0.1 part of menthol, 0.01-0.1 part of borneol, 1-5 parts of trehalose, 1-5 parts of niacinamide, 0.1-2 parts of D-panthenol, 0.1-0.3 part of sodium hyaluronate, 1-5 parts of hydroxyethyl cellulose and 82-97 parts of water. The preparation method includes the steps that water, menthol, borneol, trehalose, niacinamide, sodium hyaluronate and hydroxyethyl cellulose are mixed and heated, then the mixture is cooled, D-panthenol is added, and the medicine is obtained after mixing. According to the medicine, due to the fact that menthol, borneol, trehalose, niacinamide and D-panthenol are used for compatibility according to scientific matching, the components have a positive synergistic effect, the medicine can relieve swelling and pain and has the relieving and calming effect, a layer of breathable protective film is formed on the surface of injured skin, the outside world is prevented from stimulating the injured skin, and therefore the injured skin can be fast repaired.