The invention discloses an externally-used liquid medicine for treating tenosynovitis of hand flexor tendons. The externally-used liquid medicine is prepared by soaking parts by weight of following Chinese herbs with yellow wine: 10-20 parts of crystobalite, 10-20 parts of magnetite, 5-15 parts of bidentate achyranthes, 5-15 parts of dendrobe, 5-10 parts of cinnamomum cassia, 5-10 parts of aleppo avens, 5-10 parts of radix rehmanniae, 5-10 parts of notopterygium incisum, 3-8 parts of radix saposhnikoviae, 3-8 parts of safflower, 3-8 parts of radix angelicae sinensis, 3-8 parts of unprocessed licorice, 1-5 parts of eucommia ulmoides, 1-5 parts of antelope horn, 1-5 parts of astragalus membranaceus, 1-5 parts of peach kernel, 1-5 parts of white poria, 1-5 parts of fructus aurantii, 1-5 parts of wild jujube seeds, 1-5 parts of caulis spatholobi, 1-5 parts of astragalus henryl and 1-5 parts of ganoderma lucidum. The externally-used liquid medicine is short in course of treatment, quick in effect, good in treatment effect, low in treatment cost and free of obvious side effects and adverse reactions, and the tenosynovitis of hand flexor tendons is unlikely to recur. The invention further discloses a preparation method of the externally-used liquid medicine for treating the tenosynovitis of hand flexor tendons. The preparation method comprises the following main steps: (1) primarily soaking; (2) secondarily soaking; (3) combining leachates. The preparation method is simple in steps and good in leaching effect.