The invention relates to an anti-inflammatory and cosmetic traditional Chinese medicine health preparation for external application and a preparation method thereof. The anti-inflammatory and cosmetic traditional Chinese medicine health preparation for the external application is prepared from the following active ingredient raw materials in parts by weight: 20-30 parts of rheum officinale, 10-20 parts of costustoot, 5-10 parts of cassia twig, 5-10 parts of angelica dahurica, 10-20 parts of mint, 0.5-2 parts of borneol, 10-20 parts of rhizoma coptidis, 10-20 parts of radix astragali, 20-30 parts of radix lithospermi, 10-20 parts of couch grass root, 10-20 parts of pseudo-ginseng, 10-20 parts of paris polyphylla, 20-30 parts of the dried rhizome of rehmannia, 0.5-2 parts of camphor, 10-20 parts of moutan bark, 30-50 parts of gypsum, 10-20 parts of herba lycopi, 20-30 parts of broom cypress fruit, 20-30 parts of cortex dictamni and so on. The anti-inflammatory and cosmetic traditional Chinese medicine health preparation for the external application, provided by the invention, can have effects of rapidly stopping fevers, diminishing inflammation, relieving pains, treating scalds, treating burns and rapidly beautifying, has pain relieving efficacy on trauma symptoms such as injuries from falls, knife wounds, burns and scalds, can also have obvious anti-inflammatory and pain relieving effects on symptoms such as toothache, throat Inflammation and cough and has the advantages of promoting blood circulation to remove blood stasis, activating meridians to stop pain, realizing antisepsis, promoting growth of tissue regeneration and so on.