The invention provides a Chinese medicinal composition for treating haemorrhoids and a preparation method thereof. The Chinese medicinal composition is prepared from pangolin scales, rehmannia root, carbonized human hair, fortune windmillpalm petiole, papaya, dahurian angelica root, hedgehog hide, stone-like pmphalia, szechuan lovage rhizome, Chinese angelica, peach seed, golden thread, cochinchina momordica seed, poppy shell, ground beeltle, Japanese ampelopsis root, amur corktree bark, rhubarb, lightyellow sophora root, Chinese gall, dark plum fruit, rhizoma atractylodis, red paeony root, baical skullcap root, figwort flower picrorhiza rhizome, gardenia, pagodatree pod, Chinese lobelia herb, safflower, honeysuckle flower, pagodatree flower bud, frankincense, dragon blood, myrrh, borneol and sinkiang arnebia root. The medicament of the invention is a medicinal preparation prepared from the extracts of the raw material medicaments. The medicament of the invention has the effects of promoting blood circulation, dispersing swelling, removing blood stasis, relieving pains, detoxifying, draining pus, eliminating putridity and engendering flesh and is mainly used for treating light water and fire burns, swelling and pain of sores and wound fester.