The invention relates to a traditional Chinese medicine preparation, in particular to a traditional Chinese medicine ointment for treating arthritis of a knee cap and a preparation method of the traditional Chinese medicine ointment. The traditional Chinese medicine ointment for treating arthritis of the knee cap comprises radix dipsaci, hibiscus rosa-sinensis, asarum, notopterygium incisum, phryma leptostachya, herba taxilli, caulis spatholobi, gadflies, martianus dermestoides chevrolat, beggarweed, herba artemisiae anomalae, semen cuscutae, cirsium vlassovianum, gecko, burmann cinnamon barks, aristolochia mollissima, chonemorpha valvata, floating fern, ocimum basilicum, asarum forbesii maxim and herbs of laciniate blumea. Raw materials of the ointment are complementary, have the functions of yang warming, cold dispelling, blood activation, collateral dredging, moisture removal and pain relief, can treat principal and subordinate symptoms, and can achieve good effects. The medicines complement each other, are prepared in a certain weight proportion according to the theory of traditional Chinese medicine, have a remarkable curative effect on arthritis of the knee cap, are safe and reliable, and avoid irritation of intestines and stomach. The traditional Chinese medicine ointment has the characteristics of fast effect, no pollution, no pain or side effect and the like, and is worth popularizing.