The invention relates to a Chinese herbal preparation specially used for setting a fracture, comprising the following components by weight: 12-15g of cortex albiziae, 9-12g of pseudo-ginseng powder, 12-15g of teasel root, 9-12g of Chinese polyphaga, 12-15g of lycopodium clavatum, 6-9g of safflower, 15-20g of bloodwort, 9-12g of milk vetch, 12-15g of native copper, 6-9g of common fumitory, 12-15g of eucommia ulmoides, 6-9g of salvia miltiorrhiza and 12-15g of ginger. The preparation method of the Chinese herbal preparation specially used for setting the fracture comprises the following steps of: firstly adding 500ml of water into the cortex albiziae, teasel root, Chinese polyphaga, lycopodium clavatum, safflower, bloodwort, milk vetch, common fumitory, eucommia ulmoides, salvia miltiorrhiza and ginger, and soaking for 40 minutes; grinding the native copper into powder, placing the native copper powder into a marmite, adding 200ml of water, boiling, and decocting for 15 minutes with slow fire; then adding the pseudo-ginseng powder into the marmite, decocting for 15 minutes with the slow fire, and filtering out liquid medicine; and then adding 300ml of water into the marmite, boiling, decocting for 15 minutes with the slow fire, removing slag and taking juice, mixing the liquid medicines, concentrating the mixed liquid medicine into 60ml, and packaging the liquid medicine into a plastic bottle after the liquid medicine is cooled.