The invention relates to a dandruff and itching stopping fermentation medicine and a preparation method and an application thereof. The adopted technical scheme is as follows: the raw materials of the dandruff and itching stopping fermentation medicine are prepared from, by weight, cinchona bark, saponin, angelica, alpinia katsumadai, white mulberry bark, forsythia, cacumen biotae, selaginella, sophora, and sapindus delavayi. The invention also provides a preparation method of the dandruff and itching stopping fermentation medicine, the steps are as follows: 1, the cinchona bark, saponin, angelica, alpinia katsumadai, white mulberry bark, forsythia, cacumen biotae, selaginella, sophora, and sapindus delavayi are crushed to 80-110 parts, after the sterilization, are added into sterilized rice wash water of 30-35 times the quality of the medicine material, and kept soaked under 40-50 DEG C; 2, after 0.5-3 hours, when the temperature is lowered to 30 DEG C, then added with 0.005-0.03 part of yeast and 0.02-0.05 part of distiller's yeast, mixed well and sealed, after 5-10 days fermentation, are filtered to obtain the extract solution; 3, the medicine dregs are added with 5-8 times the weight of 70% ethyl alcohol, then extracted by heating and refluxing, and ethanol is recovered, after centrifugation liquid supernatant is obtained, the obtained liquid supernatant after 2-3 times repetition is merged with the liquid extracts obtained after fermentation and filtration, then the dandruff and etching stopping fermentation medicine is obtained.