The invention discloses an oral traditional Chinese medicine for treating fracture and tendon injury and a preparation method of the oral traditional Chinese medicine. The pharmaceutical composition comprises the following components: 60 g of frankincense, 60 g of myrrh, 60 g of draconis resin, 60 g of earthworm, 60 g of muskmelon seed, 120 g of fortune's drynaria rhizome, 120 g of himalayan teasel root, 100 g of sappan wood, 240 g of Chinese angelica, and 120 g of pyrite (vinegar quenching). The oral traditional Chinese medicine is prepared from the pure herbal medicinal materials and is small in side effects, all the components give play to difference synergistic effects and act on fracture and tendon injury parts together, and the medicines are used according to the monarch, minister, assistant and guide principle, so that all the components can play the maximum role. Through process screening, the uniformity of particle size distribution is improved, the packing difference is reduced, the dissolution effect is improved, the bulk density is improved, the administration is more convenient, a repose angle is reduced, the flowability after dissolution is increased, the mixing is uniform, and the curative effect is ensured. Therefore, the oral traditional Chinese medicine has the characteristic of remarkable treatment effects on fracture and tendon injury.