The invention relates to a medicine, and in particular relates to a medicine for treating rheumatoid bone diseases and a preparation method thereof. A medicine bag comprises the following medicines by weight: 10-15 g of szechuan lovage rhizome, 10-15 g of radix angelicae, 15-20 g of radix clematidis, 5-10 g of radix aconiti agrestis, 5-10 g of monkshood, 5-10 g of fructus liquidambaris, 10-15 g of cinnamon, 10-20 g of cortex acanthopanacis, 10-15 g of frankincense, 10-15 g of myrrh, 10-15 g of dried body of ground beetle, 10-15 g of Japanese snailseed root, 10-15 g of rhizoma acori graminei, 10-15 g of galangal, 15-20 g of ramulus rubi, 20-30 g of Tibetan hair cream, and 20-30 g of tinospora sinensis merr. The medicinal liquor comprises the following medicines by weight: 20-30 g of boschniakia rossica, 10-15 g of Tibetan saussurea involucrata, 10-15 g of saffron crocus, 20-30 g of fructus teminaliae billaricae, 20-30 g of Tibetan Fritillaria thun-bergli, 10-20 g of Tibetan lithospermum, and the balance of 60% alcoholic solution with the volume fraction of 500ml.