The invention discloses a traditional Chinese medicine preparation for treating traumatic muscle stiffness and an application method thereof. The preparation contains eight Chinese herbal medicines such as radix zanthoxyli (15%), beefwood-like clubmoss herbs (15%), uncaria laevigata (15%), caulis spatholobi (15%), radix achyranthis bidentatae (2%), philippine flemingia roots (15%), asarum (11%) and ligusticum wallichii (12%), can be prepared into water aqua or acts on traumatic muscle hardened skin lesions (traumatic muscle atrophy) according to a fumigation-washing therapy or a steaming therapy. The traditional Chinese medicine preparation has a unique curative effect, is available in raw materials, simple and feasible in application method, short in treatment course, low in treatment cost, and applicable to clinical application of a suffer with traumatic muscle stiffness or traumatic muscle atrophy, the effective rate can be up to 93%, and the expense burden of the sufferer can be relieved.