The invention discloses a new external Chinese medicinal composition with functions of blackening hair and dressing hair and a preparation method thereof. The Chinese medicinal composition mainly comprises the following raw material medicaments: tuber fleeceflower root, ginseng, Chinese angelica, oriental arborvitae carbon, Szechuan lovage rhizome, incised notopterygium rhizome, fineleaf schizonepeta herb, cassia twig, Manchurian wildginger, mint, kudzuvine root, chrysanthemum, baical skullcap root, lightyellow sophora root, weeping forsythia, red paeony root, white paeony root, divaricate saposhnikovia root, storax, dahurian angelica root, mugwort leaf, Chinese honeylocust fruit, prepared rehmannia rhizome, clove, pseudoginseng root, root of red-rooted salvia, black sesame and yerbadetajo herb. The Chinese medicinal composition of the invention can be prepared into any external preparation by a conventional Chinese medicinal preparation method. The Chinese medicinal composition can remarkably improve qi and blood circulation, expel wind and cold pathogens, dredge qi and blood, activate blood circulation to dissipate blood stasis, expel head wind, blacken hair, dress hair and improve the symptoms such as white hair, gray hair, brown hair, easily broken hair, hair loss and the like, and has extract clinical effect, remarkable curative effect and quick response. The Chinese medicinal composition is combined by adopting the medicaments prescribed by the national formulary and an external therapy method is adopted, so the Chinese medicinal composition has no stimulation on theskin or dependency and has the advantages of low expense, no toxic or side effect and the like.