The invention discloses a burning and scalding paste and a preparation method thereof. The burning and scalding paste is prepared from pine bark, borneol, Angelica sinensis, pseudo-ginseng, folium artemisiae argyi, fresh ginger, sesame oil and oil. The preparation method comprises the following specific preparation steps: firstly, washing the pine bark, borneol, Angelica sinensis, pseudo-ginseng, folium artemisiae argyi and fresh ginger with clean water, and airing for standby use; secondly, adding water into a clean porcelain, and heating; thirdly, putting the pine bark into the porcelain, and heating until the water is boiling; fourthly, putting the borneol, Angelica sinensis, pseudo-ginseng, folium artemisiae argyi and fresh ginger into the porcelain in sequence for boiling, and then cooling to room temperature; and fifthly, filtering, adding the sesame oil into a filter liquor and stirring into the paste. The burning and scalding paste is reasonable in compatibility, each composition has synergistic interaction, and the paste directly acts on the skin to reach the purpose of curing burning and scalding through transdermal absorption of medicine. The feeling of burning pain is alleviated instantly after a patient smears the paste, and scars cannot remain on affected parts of the patient with light or medium burning and scalding if the patient does not has an allergic constitution, so that the burning and scalding paste has the characteristics of being obvious in curative effect, quick to become effective, high in pain stopping, short in course of treatment and free of toxic and side effects.