The invention discloses a traditional Chinese medicinal fumigating and washing pulvis used for rehabilitation nursing of knee joints, and a preparation method thereof, and belongs to the field of traditional Chinese medicines. Raw materials of effective components of the pulvis comprise Mucuna sempervirens Hemsl, Operculina turpethum, Ficus sarmentosa var. impressa, Ligusticum wallichii, Cissus pteroclada Hayata, Euonymus fortune, Stem of Falsenettleleaf Pepper, licorice root, corydalis tuber, Cinnamomum mairei Levl., root of Austral Akebia, Himalayan Teasel Root, Goodyera schlechtendaliana Rchb. f., Chinese Taxillus Twig, Smilax scobinicaulis C. H. Wright, Achyranthes bidentata, finely divided phtheirospermum root, Cortex Acanthopanacis, Bark of Ivy tree, Rhizoma Curcumae, Chinese waxgourd stem, Lamium amplexicaule L., Dioscorea tenuipes and ground beetles. Medicinal materials selected in the invention accord with monarch, minister, assistant and guide principles, and the pulvis acts appropriately to the situation; and the pulvis has the efficacy of dispelling wind and eliminating dampness, strengthening tendons and bones, breaking stagnant and eliminating blood stasis, activating blood circulation and dissipating blood stasis, warming meridian and dispelling cold, moving qi and invigorating blood circulation, relaxing muscles and tendons and activating collaterals, eliminating swelling and relieving pains, and easing joint movement, and has the advantages of good absorption effect, substantial curative effect, no toxic or side effects, and no clinic adverse effects, and a clinic verification result shows that the pulvis has a high cure rate on knee joint dysfunction.