The invention discloses a traditional Chinese medicine preparation for treating pain and skin infection ulceration and a preparation method thereof, and belongs to the field of medicinal liquor, the traditional Chinese medicine preparation is prepared by secondary soaking of a traditional Chinese medicine composition in 40-60-degree liquor, the weight ratio of the 40-60-degree liquor to the traditional Chinese medicine composition during primary soaking is 5: 1, and the weight ratio of the 40-60-degree liquor to the traditional Chinese medicine composition during secondary soaking is 2: 1; the traditional Chinese medicine composition is prepared from the following raw materials: thymus mongolicus, flemingia philippinensis, cudrania cochinchinensis, polygala fallax hemsl, fructus gardeniae, elecampane, agastache rugosus, agilawood, frankincense, pepper, pseudo-ginseng, garden balsam stem, lignum dalbergiae odoriferae, sandalwood, hematoxylon, rhizoma sparganii, myrrh, radix paeoniae rubra, radix dipsaci, safflower, borneol, mint ice, and asiatic toddalia root. The preparation method is simple, pure traditional Chinese medicines are brewed, and side effects are avoided; the traditional Chinese medicine preparation is convenient to use, can be sprayed, wiped and applied, can be used for cleaning and disinfecting wounds, and has the effects of promoting tissue regeneration and burying mouths while resisting bacteria and diminishing inflammation.