The invention relates to the field of medicines, and particularly discloses a traditional Chinese medicine composition, a preparation method thereof, an external medicine and application. The traditional Chinese medicine composition comprises oldenlandia diffusa, wild chrysanthemum flower, sea clam shell, seaweed, bryozoatum, spina gleditsiae, prunella vulgaris, ricepaperplant pith, forsythia, herba violae, dandelion, patrinia herb, houttuynia cordata, ampelopsis japonica, rhizoma smilacis glabrae, barberry root, humulus japonicus, astragalus membranaceus, toad, radix paeoniae rubra, loofah sponge, fructus gardeniae, radix trichosanthis, peach kernels, bletilla striata, pseudo-ginseng, safflower carthamus, angelica sinensis, cowherb seeds, verbena officinalis, eupolyphaga, solanum lyratum,cottonrose hibiscus leaves, paris polyphylla, pangolin scales, dragon's blood, olibanum, myrrh and other raw materials. The traditional Chinese medicine composition provided by the invention is a pure traditional Chinese medicine for external use and has the advantages of no toxic or side effects, the preparation method provided by the invention is simple, black and bright plaster is formed through a chemical reaction generated at high temperature, the effects of removing stasis, diminishing swelling, dispersing blood stasis, diminishing inflammation, relieving pain and the like are achievedthrough application, and the problem that most of existing medicines for removing stasis and diminishing swelling are western medicines and have toxic and side effects is solved.