The invention discloses cancer treating and blood stasis removing powder and application thereof. The cancer treating and blood stasis removing powder is prepared from the following raw materials: 20 to 30g of cortex phellodendri, 10 to 20g of radix scutellariae, 25-35g of radix et rhizoma rhei preparata, 10 to 20g of fructus gardeniae, 5 to 15g of borneol, 5 to 15g of frankincense, 10 to 20g of radices trichosanthis, 5 to 15g of turmeric, 10 to 20g of rhizoma atractylodis and 25 to 35g of mirabilite. The cancer treating and blood stasis removing powder is applied externally to treat drug-induced phlebophlogosis, is effective in treatment, and has the effects of bitter cold detoxication, removing dampness to reduce phlegm, dispelling pathogenic wind and removing dampness, relieving swelling and pain and the like; in addition, the cancer treating and blood stasis removing powder further has the effects of bacterium inhibition, anti-infection, analgesia, spasmolysis, promotion of microcirculation, adjustment of local immunity, relief of local pain, edema, redundant effusion and secondary infection and the like. When used, the cancer treating and blood stasis removing powder is simple in operation, has no side effect, and is economical and practical, thereby being able to be accepted by a patient with pleasure.