The invention discloses ointment for removing putrefaction and promoting tissue regeneration. The ointment for removing putrefaction and promoting tissue regeneration is prepared from the following components in parts by weight: first ointment prepared from 25-40 parts of Chinese angelica, 50-65 parts of lithospermum, 6-12 parts of liquorice, 15-25 parts of frankincense, 18-25 parts of myrrh, 8-12parts of borneol, 12-18 parts of angelica root, 12-18 parts of dragon blood and 3-6 parts of cinnabar; and second ointment prepared from 25-40 parts of Chinese angelica, 50-65 parts of lithospermum,6-12 parts of liquorice, 15-25 parts of frankincense, 18-25 parts of myrrh, 8-12 parts of borneol, 12-18 parts of angelica root, 12-18 parts of dragon blood, 3-6 parts of cinnabar, 0.5-3 parts of calomel and 0.5-3 parts of hydrargyri oxydum rubrum. The invention also discloses a preparation method of the ointment for removing putrefaction and promoting tissue regeneration. The ointment for removing putrefaction and promoting tissue regeneration has the effects of detoxifying, stopping pain, activating blood, removing putrefaction and promoting tissue regeneration, can be used for treating various skin and external diseases as well as pyogenic infections, can be used for treating bedsores, burns and scalds, haemorrhoids, herpes zosters and bites and stings caused by insects and bees and hasrelatively good curative effect on a wound or a long-time nonunion open sore.