The invention provides a medicine for preventing and treating respiratory diseases, and its preparation method. The preparation method is characterized in that the method comprises the following steps: dissolving borneol and menthol in edible ethanol and edible acetate acid gracial, sequentially adding edible vinegar, edible propionic acid, edible acetic acid, medical hydrochloric acid, food-grade formic acid and water, uniformly stirring, uniformly mixing the obtained substance with a powdery mixture or a volatile oil mixture of Atractylodes lancea, mint, Leaf of Tasmanian Bluegum, Artemisia argyi, Folium Viticis Negundo, Herba Schizonepetae, Folium Perillae, leaf of Chimonanthus nitens Oliv., Cymbopogon distans, Herba Moslae, dahurian angelica root, Manchurian wildginger, ginger, dried orange peel, Wrinkled Gianthyssop, Ligusticum sinense and lavender, and filling the obtained material to a bottle to obtain the medicine.