The invention discloses a traditional Chinese medicine for diminishing inflammation and arresting bleeding in gynaecology and obstetrics and a preparation method thereof. The traditional Chinese medicine for diminishing inflammation and arresting bleeding in gynaecology and obstetrics is prepared from the following raw materials in parts by weight: radix cirsii jeponici, pomegranate flower, peanut shell, pomegranate rind, radix codonopsitis, donkey-hide gelatin, herba schizonepetae flower, motherwort, eclipta, pseudo-ginseng powder, carbonized hair, calcined dragon bone, radix rehmanniae, Semen Euryales, herba houttuyniae, longan bark, Chinese holly, Pyrrosia calvata, cedar oil, poplar flower, asarum, Pleurospermum hookeri, madder, fructus piperis longi root, Gentiana apiata, Dangboshen, fenugreek, nandina, Siegesbeckia Orientalis, wolfberry fruit, Ixora chinensis, Anemone hupehensis, ichnocarpus frutescens, chicken manure white, Scutellaria orthocalyx Hand.-Mazz, Bighead Atractylodes Rhizome, Koelreuteria paniculata and cattail spike. Under the interactions of the components, the traditional Chinese medicine has the synergistic effects of strengthening the middle-jiao, invigorating qi, soothing the nerves, benefiting the intelligence, nourishing the liver and kidney, diminishing inflammation and arresting bleeding. All the agents are traditional Chinese medicine agents, and the traditional Chinese medicine has the advantages of obvious effect, simple application, low price and basically no side effect, is convenient to use, is suitable for dosage in various occasions, and is beneficial to quick recovery of the patient.