The invention discloses a medicine for treating fractures and acute soft tissue injuries as well as a preparation method of the medicine. The medicine for treating the fractures and the acute soft tissue injuries is prepared from raw materials in parts by weight as follows: 3-9 parts of frankincense, 2-9 parts of myrrh, 5-11 parts of eucommia bark, 2-9 parts of common floweringquince fruits, 2-8 parts of unprocessed pedate pinallia jackinthepulpit rhizomes, 2-9 parts of rose flowers, 2-7 parts of ground beetles, 2-8 parts of cassia bark, 2-9 parts of slenderstyle acanthopenax bark, 5-11 parts of native copper, 4-12 parts of dipsacus asper roots, 2-9 parts of cibot rhizomes, 2-8 parts of Chinese angelica, 5-15 parts of dragon's blood, 2-7 parts of dandelions, 2-7 parts of honeysuckle stems, 5-10 parts of beeswax and 1-3 parts of borneol. The medicine relievespain of a patient obviously, improves the limb swelling degree, promotes callus growth, shortens the fracture healing time and is exact in clinical effect when used for treating the fractures and the acute soft tissue injuries.