The invention discloses a medicinal liquor capable of dispelling cold and dampness, and dredging channels and collaterals, and a preparation method thereof. The medicinal liquor capable of dispellingcold and dampness, and dredging channels and collaterals comprises, by weight, Rhizoma Sinomeni Cauliset, radix angelicae pubescentis, Asarum Herb, fructus liquidambaris, rhizoma atractylodis, silkworm faeces, Artemisia argyi, cassia twig, rhizoma zingiberis, Chinese prickly ash, Tinosporae Sinensis Caulis, Caulis Piperis Kadsurae, Fissistigma polyanthum, Sabia japonica, prunella vulgaris, pseudo-ginseng, red sage root, safflower carthamus, Taxillus sutchuenensis, spatholobus stem, motherwort, cortex acanthopanacis, common cnidium fruit, achyranthes root, and baijiu. The raw materials are widely available; the different raw materials are immersed in baijiu so as to obtain a finished product; the finished product is adopted for bath, so that human immunity is improved, fatigue is relieved,qi and blood circulation function is improved, coldness dispelling effect on people with hand and foot coldness and cold body is achieved, uterine coldness is treated, no adverse reaction is caused inusing process, and the application prospect is promising.