The invention discloses a bone activating and pain relieving plaster and a preparation method thereof. The plaster is prepared from earthworm, trogopterus dung, lindera aggregata, radix clematidis, herba aristolochiae, rhizoma atractylodis, angelica sinensis, notopterygium root, safflower, radix angelicae, divaricate saposhnikovia root, frankincense, myrrh, garden balsam stem, dried ginger, dog bone, white paeony root, asarum, ligusticum wallichii, pseudo-ginseng, kadsura pepper stem, honeysuckle stem, berba aristolochiae mollissimae, radix scrophulariae, baked squama manitis, curcuma zedoary,liquorice, rhizoma corydalis processed with vinegar, mint, clove, radix cyathulae and fried eucommia ulmoides through reasonable compatibility according to a scientific ratio. The plaster prepared bythe invention has the effects of warming and activating meridians, diminishing inflammation and relieving pain, softening hardness and resolving stasis, promoting blood circulation to remove blood stasis, and dispelling wind and drying dampness, can improve elastic regeneration of activated fibrous tissues so as to relax under-pressure tissues, achieve smooth qi and blood circulation and eliminate pain, has significant curative effect on cervical spondylosis, lumbar spondylosis, lower limb arthralgia, tenosynovitis, tennis elbow and bone fracture old diseases, and avoids relapse.