The invention relates to the technical field of medicine, and provides a colloidal sulfur liquid dressing and a preparation method thereof. According to the dressing, colloidal sulfur, total anthraquinone, ultra-low molecular hyaluronic acid, ceramide, lavender essential oil and silicone serve as main active ingredients, and the problem that sulfur is hardly soluble in water is solved; the volatility and high oxidability of the sulfur are reduced, and the defects that when the sulfur is directly used, the smell is unpleasant and clothes are contaminated are overcome; adverse reactions caused when the sulfur is in direct contact with a large part of the skin are eliminated. The dressing has the advantages of killing insects and bacteria, relieving itching, promoting wound healing, inhibiting scar formation, repairing and protecting the skin and the like, and is particularly suitable for treating acne, rosacea, skin toxoplasmosis, trichomonal pruritus vulvae, tinea manus and pedis, onychomycosis, tinea versicolor, psoriasis, tinea capitis, seborrheic dermatitis and neurodermatitis. The preparation method of the colloidal sulfur liquid dressing is scientific in formula, simple in preparation process, convenient to use and capable of being used for industrial production.