The invention discloses a traditional Chinese medicine used for anorectal surgery wound healing and a preparation method thereof. The medicine is made from fourteen traditional Chinese medicinal materials such as herba schizonepetae, rheum officinale, cortex phellodendri, dandelion, radix sophorae flavescentis, Chinese parsnip roots, garden burnet, mint, cortex lycii radicis, mugwort leaves, compound of glauber-salt and liquorice, garden balsam stems, flos sophorae and fructus forsythia, and edible salt. The invention further discloses a preparation method of the medicine. According to the invention, the method of hip bath is adopted, so that the liquid medicine can directly act on the wound surface. Results of clinical researches show that the medicine has efficacy of clearing away heat and toxic materials, removing rots, eliminating pus, promoting blood circulation to remove blood stasis and generating tissue and healing wound and the medicine is applicable to anorectal diseases such as downward flow of damp-heat hemorrhoids, anal fissure, anal fistula, anal carbuncle, perianal abscess and the like. The curative effect is superior to that of metronidazole in a control group.