The invention discloses a traditional Chinese medicine preparation for treating fire-toxin fluid-impairment type burns and a preparation method thereof. The traditional Chinese medicine preparation disclosed by the invention comprises the following bulk drugs: henry magnoliavine stem or root, botrypus virginianus, tangerine pith, lalang grass rhizome, acalyphae, sophora alopecuroide, honeysuckle, indigo naturalis, wild chrysanthemum flower, pentasachme caudatum, Chinese olive, groundsel, radix tinosporae, ampelopsis japonica, cirsium vlassovianum, chinese holly, ajuga nipponensis makino, rumex japonicus, jasminum laurifolium, adenophora tetraphylla, milfoil, sesbania, dendrobe, changium smyrnioides, fructus forsythiae, American ginseng, astragalus membranaceus, and gynostemma pentaphylla. The traditional Chinese medicine preparation disclosed by the invention has the beneficial effects that the traditional Chinese medicine preparation has the effects of clearing heat, removing toxicity, tonifying qi and nourishing yin and is mainly used for treating fire-toxin fluid-impairment type burns; aiming at clinical manifestation in different degrees, fire-toxin fluid-impairment type burns are treated in a dialectic manner; and the traditional Chinese medicine preparation is not only capable of resisting infection, reducing exudation, removing necrotic tissue to promote granulation, increasing skin repair ability and reducing gastrointestinal reaction and general reaction, but also has the advantages of being high in efficiency, rapid to take effect, accurate in curative effect, high in safety, low in price, free from toxic and side effect and the like.