The invention discloses a preparation method of Xiaojin pills, wherein the preparation method comprises steps of material preparing, moist heat sterilizing, crushing and sieving, total-mixing, medicine refining and drying. According to the preparation method disclosed by the invention, momordica cochinchinensis, pine-soot ink, processed frankincense, processed myrrh and resina liquidamberis are crushed by virtue of a jet mill with a high crushing fineness; by constantly conducing the crushing process at low temperature, a cohesion phenomenon in the resina liquidamberis, frankincense and like medicinal materials is avoided and the medicinal materials are easy to sieve; in combination with viscosities of the resina liquidamberis, the frankincense, the myrrh and the like in a prescription, the dosage of starch is reduced; by adding proper amount of a disintegrating agent to a pelleting process, the pills, before being taken, are unnecessary to be broken and are ready to be taken directly anytime and anywhere, and the pills are disintegrated into blocks in water in gastrointestinal tract, so that burden on the gastrointestinal tract is not increased and a good slow-release effect is achieved; and the method disclosed by the invention is simple to operate, convenient in preparation, low in cost and applicable to industrial large-scale production.