The invention belongs to the technical field of traditional Chinese medicines, and relates to a traditional Chinese medicine ointment for treating second-degree burns, rapidly relieving pain and avoiding scars and a preparation method thereof, the traditional Chinese medicine ointment comprises the following components: raw garden burnet, lithospermum, indigo naturalis, borneol, myrrh, frankincense, golden cypress and rheum officinale. The traditional Chinese medicine composition is prepared from the following raw materials in parts by weight: 12-15 parts of radix sanguisorbae, 15-18 parts of radix arnebiae seu lithospermi, 5-8 parts of indigo naturalis, 12-15 parts of borneol, 5-8 parts of myrrh, 5-8 parts of frankincense, 15-18 parts of cortex phellodendri and 20-23 parts of radix et rhizoma rhei. According to the traditional Chinese medicine composition disclosed by the invention, the radix sanguisorbae, the radix arnebiae seu lithospermi, the indigo naturalis, the borneol, the myrrh, the frankincense, the cortex phellodendri and the radix et rhizoma rhei are used as the raw materials and are matched with pure sesame oil boiled oil to mix various herbal medicines; the ointment has a certain moistening effect, can be conveniently adhered to the skin surface, can quickly relieve pain, does not leave scars, can remove scab after one week, and has no wound surface.