The invention discloses a novel externally-applied traditional Chinese medicine composition for treating brain stem tumors and a preparation method thereof. The traditional Chinese medicine composition mainly comprises the following raw materials of medicines: redroot gromwell root, musk, borneol, camphor, draconis sanguis, tuckahoe, giant knotweed, herba schizonepetae, cassia twig, rhizoma ligustici wallichii, wild ginger, radix sileris, notopterygium root, peppermint, chrysanthemum, baikal skullcap root, kuhseng, weeping forsythia, honeysuckle, dandelion, indigo naturalis, red peony root, white peony root, tetrandra root, sacred basil, benzoin, rhizoma atractylodis, rhizoma cyperi, rosa banksiae, radix notoginseng, madder, hyacinth bletilla, rhubarb, toad venom, borax, wrinkled gianthyssop, santalwood, lignum aloe, citron, stinkbug, dalbergia wood, Chinese ephedra, dahurian angelica root, sibirian button bur and magnolia flower. The traditional Chinese medicine composition can be prepared into any externally-applied preparation according to a conventional traditional Chinese medicine preparation method. The invention can be used for obviously improving the passage of the functional activities of qi, dispelling wind, dispelling cold, dredging the stasis of the qi and the blood, promoting blood circulation, relieving the stasis of the blood, regulating the flow of the qi, alleviating pain, reducing tumor bodies and improving the symptoms of headache, dizziness, blurred vision, intracranial pressure ascension, hemiplegia, limb numbness and the like and has definite clinical curative effect, obvious curative effect and quick acting. Because of completely adopting the medicines specified by the dispensatory of China for combination and adopting an externally-applied treatment method, the traditional Chinese medicine composition has the advantages of less stimulation to the skin, low cost, no toxic or side effect basically and the like.