The invention discloses traditional Chinese medicine bath manipulation external decoction for treating neonatal jaundice and preparation and using methods of the traditional Chinese medicine bath manipulation external decoction. The traditional Chinese medicine bath manipulation external decoction is prepared from the following crude drugs in percentage by weight: herba artemisiae scopariae, fructus gardenia, Radix et Rhizoma Rhei, radix glycyrrhizae, Rhizoma Acori Graminei, radix curcumae, radix scutellariae, herba pogostemonis, Mangnolia officinalis, radix salviae miltiorrhizae, herba eupatorii, rhizoma atractylodis and radix paeoniae rubra; after all the crude drugs are weighed according to the weights, water is added for soaking, and then liquid decocting through a drug-decocting machine, residue filtering and packaging are conducted, so that the external decoction in bags is prepared; and during using, the decoction is adopted and added with warm water, bathing is conducted for 20-40 minutes every time, after bathing is completed, the body is wipe-dried to be manipulated for 40-80 minutes, and after navel disinfection, treating is completed. The traditional Chinese medicine bath manipulation external decoction is prepared from pure traditional Chinese medicines and absorbed through the skin, has the function of strengthening the spleen and stomach, and has the effects of promoting discharging of bilirubin, clearing heat and benefiting the gallbladder, and removing toxins and jaundice, the treating effective rate reaches 97%, and thus the traditional Chinese medicine bath manipulation external decoction for treating neonatal jaundice is simple, convenient, easy to implement and good in treating effect.