The invention discloses emulsion containing traditional Chinese medicine extracting solution and used for treating eczema and a preparation method thereof. According to the formula, the emulsion comprises sweet almond oil, calamine, evening primrose oil, comfrey infused oil, emu oil, a rhizoma chuanxiong extracting solution, a cortex phellodendri extracting solution, a radix sophorae flavescentis extracting solution, a rough gentian extracting solution, a cortex dictamni extracting solution, a common cnidium fruit extracting solution, a cell activating agent MG-60, water-soluble VE, glycerol, 1,2-propylene glycol, ethylparaben, sodium alginate, Creagel SC G57 and distilled water. Compared with the prior art, the emulsion is gentle in medicine property and high in safety. Active substances in natural traditional Chinese medicine are adopted for promoting healthy growth of skin, the normal barrier function of the skin is restored, inflammatory cells can be inhibited, the emulsion is antibacterial and can expel toxin, superficial cells of the skin are adjusted, and elasticity of the skin is restored; the emulsion further has the functions of calming down the nerves and relieving itching, eliminating redness and swollenness, relaxing the skin surface layer and relieving skin scars and has the curative effect of remarkably relieving eczema.