The invention discloses an ointment for warming channels and dredging collaterals as well as alleviating pain and a preparation method thereof. Szechuan aconite, wild aconite root, arisaema cum bile, pinellia tuber, pseudo-ginseng, dragon blood, frankincense, myrrh, elephant skin, pangolin, cibot rhizome, cyathula root, angelica, chuanxiong rhizome, peach kernel, safflower, gentiana macrophylla, american lopseed and the like are taken as raw materials, are reasonable in compatibility, and mutually coordinate to generate favorable synergetic curative effects to form a compound medicine for warming channels and dredging collaterals as well as promoting blood circulation and alleviating pain, thereby exerting good effects of the medicines. The preparation method of the ointment is simple and convenient and is easy to operate; and through reasonably adding the medicines in batches and controlling medicine frying, oil refining and decocting time, the medicine ingredients are fully refined, compounded and blended. The ointment can effectively relieve and treat multiple painful diseases, such as cervical spondylosis, protrusion of intervertebral disc, arthritis, traumatic injury, blood stasis and swelling, and is high in cure rate, capable of preventing disease recurrence and allergy and free of toxic or side effect.