The invention discloses a chilblain ointment capable of protecting skin and smoothening scars as well as a preparation method of the ointment. The chilblain ointment comprises substances as follows: argan oil, horse fat, snake oil, aloe oil, mango grease, arnebia and corn oil, sea buckthorn fruit oil, oat beta-glucan, an eggplant root extract liquid, a bletilla extract liquid, allantoin, a universal self-emulsifying compound emulsifier AC-402, carbomer-940, a 40% triethanolamine solution, sodium alginate, ethylene diamine tetraacetic acid disodium salt, glycerin, a 75% ethyl alcohol solution of 6% ethylparaben, a 75% ethyl alcohol solution of 6% methylparaben, 1,2-propylene glycol and distilled water. Compared with the prior art, the chilblain ointment is mild and non-irritating in property and high in safety and can nourish problem skin deeply, significantly reduce the recurrence rate of chilblains, promote body surface blood circulation and metabolism, stimulate pore detoxification, promote wound healing, diminish inflammations, relieve pain, soften and whiten the skin and reducing speckles.