The invention relates to a drug for external use or healthcare article, and in particular relates to a medicine for external use capable of improving sleep, improving intelligence, soothing the nerves and invigorating kidney and a preparation method. The preparation method comprises the steps of cutting the root of red-rooted salvia and white atractylodes rhizome into segments of 10mm to 15mm, mixing spina date seeds (fried), schisandra chinensis, Tuckahoe, radix ophiopogonis, cape jasmine, prepared polygonum multiflorum, polygala tenuifolia and the above two traditional Chinese herbs, heating and refluxing the mixture in an extraction tank, soaking the mixture in the water with the quantity being five times that of the mixture for 1 hour, heating, refluxing and extracting for 5 hours, concentrating to the specific gravity of 1.15 to 1.20, drying at the temperature of 80 DEG C, crushing into fine powder, granulating the powder, and packaging the granules after being qualified in inspection by utilizing a composite film packaging bag, wherein every bag is filled with 20g of the granules, every three bags (or five bags, six bags and seven bags) are packaged in one box, and the packaged boxes are stored in a big box. The medicine has a healthcare function for improving the sleep and is suitable for people with poor sleeping condition caused by neurasthenia, insomnia, anxiety, climacteric syndrome and the like.