The invention provides moisturizing infant hip-protecting lotion for removing diaper rash and a preparation method thereof. The moisturizing infant hip-protecting lotion comprises the following substances: lithospermum olive oil, tea tree oil, safflower oil, sea buckthorn pulp oil, an olive emulsifier, a universal simple emulsifier, distilled water, garden burnet extracting solution, polygonum cuspidatum extracting solution, lonicera japonica extracting solution, mother chrysanthemum extracting solution, fructus cnidii extracting solution, green tea extracting solution, radix stemonae, foliumartemisiae argyi extracting solution, sodium alga acid, borneol, zinc oxide, calamine, glycerin, propylparaben, 75% of ethanol and essence. Compared with the prior art, the lotion for removing diaperrash provided by the invention adopts the extracts of multiple medicinal materials, is mild in property, high in stability, high in safety, capable of clearing, moisturizing and nourishing and pleasant in smell and can effectively improve the infant diaper rash symptoms, so that parents do not worry about the infant diaper rash problem. Meanwhile, the infant skin can be wetted and moisturized, andthe resistance of the infants is enhanced.