The invention relates to an externally-used preparation for treating sores and ulcers and diminishing swelling and inflammation. The externally-used preparation comprises major traditional Chinese medicine ingredients and minor ingredients, wherein the major traditional Chinese medicine ingredients include insect gall, schizonepeta spike, incised notopterygium rhizome, Chinese ligusticum rhizome, protea cynaroides, hairyvein agrimonia herb, Chinese fevervine herb, myrrh, dragon's blood, aspongopus, medicinal indianmulberry root, safflower, lychnis coronata, clove, musk, halenia elliptica D. Don, pearl, longspur epimedium, medicinal evodia fruit, toad venom, prepared lesser blister beetle, Japanese climbing fern spore, prepared pokeberry root, borneol, twotooth achyranthes root, kudzuvine root, cassia twig, water pine bark, fortune's drynaria rhizome, common clubmoss herb, rhizoma paridis, gypsum rubrum, prepared cuttlefish, liquorice, rhubarb, root of fischer euphorbia, figwort root, oyster, fritillary, capillary wormwood herb, root of largeleaf gentian, Szechuan lovage rhizome, cynodon dactylon (L.) Pers., herba alyxiae sinensis, radix geutianae, dendrobe, Chinese honeylocust spine and turmeric root-tuber, and the minor ingredients include triphosadenine, vaseline, triacontanol, succinic acid, coumarin, tea tree essential oil, calcium lactate, troxerutin, phospholipid, sodium chloride, glycerol monostearate, lysozyme chloride, zinc sulfate, probucol, sodium bisulfite, ascorbic acid, ethanol and salicylic acid.