The invention discloses a medicine for treating gout and rheumatism. The traditional Chinese medicine comprises the following components by weight: arisaema cum bile, angelica, sea horse, ground beetle, notopterygium root, cinnamon, radix sileris, male clove, dragon's bone, prepared radix aconiti, hoptoad skin, draconis sanguis, fructus caryophylli, mastic, prepared kusnezoff monkshood, dahurian angelica root, radix linderae, myrrh, cassia nomame thorn, calamus, rhizoma cyperi, skunk bugbane, safflower, vladimiria root, radix notoginseng, strychnos, teasel root, tangerine peel and herba lycopi. The preparation method of the medicine comprises the following steps: baking the hoptoad skin; after soaking the strychnos with water for 48 hours, dewatering and washing, removing skin and hair, cutting into small pieces, airing, medicating, pulverizing, adding with the rest 29 traditional Chinese medicines, pulverizing into fine powder, sieving with a sieve of 120 meshes and mixing evenly. Theinvention has the advantages that the invention has definite curative effect to gout and rheumatism joint gall and has the effect of radical cure without relapse after recovery. The medicine has thefunctions of promoting the circulation of qi, promoting blood circulation, removing wind, relieving pain, lessening virulence, diminishing inflammation, promoting digestion, building the body and thelike.