The invention discloses liquefied tissue regenerating and skin healing paste which is preferably composed of rapeseed oil and the following raw materials based on the weight of the rapeseed oil: 3% ofherbacamptosorisibirici, 4% of hirudoseuwhitmania, 3% of rhizomabletillaestriatae, 3% of radix notoginseng, 3% of folium persicae, 5% of folium callicarpaeformosanae, 4% of gallachinensis, 3% of pyrolusite powder, 3% of pulvis catechu, 0.1%-0.6% of margarita radix, 0.1%-0.2% of bromelain, 10%-25% of beeswax and 3%of Vaseline. The preparation method comprises the following steps: adding herbacamptosorisibirici and other traditional Chinese medicine components into the rapeseed oil for soaking, then decocting with soft fire to obtain yellow oil, and sequentially adding beeswax and Vaseline as well as pulvis catechu, margarita radix and bromelain while the yellow oil is hot. The liquefied tissue regenerating and skin healing paste is applicable to skin sores caused by bacterial infection, old sodden legs, diabeticdecayed feet, vasculitis, decubitus, burns and scalds, postoperative bad healing and all wounds with ulcers, carrions not exfoliated, no new flesh or inability to heal for longtime, and has functions of inhibiting bacteria and killing viruses, protecting and repairing damaged cortices, promoting blood circulation, infiltrating surface wounds for deep absorption, promoting blood circulation and removing blood stasis, reducing swelling and relieving pain, promoting self-liquefaction and exfoliation of deep decayed tissues, discharging pus and carrions and the like.