The invention discloses health-preserving tulip and a preparation method thereof. The health-preserving tulip comprises the following raw materials: agilawood, storax, rhizoma atractylodis, rhizoma cyrtomii, lignum dalbergiae odoriferae, anise, fennel, flos caryophylli, fructus caryophylli, cortex cinnamomi, gallnut, radix angelicae, giant hyssop, lysimachia foenum-graecum, radix et rhizoma rhei,rhizoma nardostachyos, agastache rugosus, fructus citri sarcodactylis, flos magnoliae, herba asari cum radice, XinHui dried tangerine peel, camphor, radix angelicae sinensis, benzoin, thuja, Chinese liquor, honey and clay. The health-preserving tulip has the beneficial effects that the health-preserving tulip has the effects of soothing the nerves and relieving insomnia when being internally used,can repel foulness with fragrance when being used externally, and has a good environment disinfection effect.