The invention discloses a no-scar scald ointment suitable for people and livestocks and a preparation method of the no-scar scald ointment. The no-scar scald ointment comprises the following pharmaceutical ingredients: earthworm, fructus kochiae, desmodium, red flower, bunge corydalis herb, cortex lycii radicis, Chinese red pepper, saffron crocus, centipede and brown sugar; the raw materials are accompanied by vaseline and wool fat to be prepared into the ointment. According to the invention, the traditional Chinese medicines are used as the raw materials and most of the traditional Chinese medicine raw materials are herbal medicines with low price, and thus, under the condition of ensuring an exact curative effect, cost of a product is controlled; on the aspects of selection of medicinal materials and the synergistic effect, the medicines with effects of clearing heat, removing toxicity, fighting bacterium, diminishing inflammation, stopping bleeding, promoting granulation, eliminating stasis to subdue swelling, promoting blood circulation to remove meridian obstruction, expelling wind, alleviating pain, warming spleen and stomach for dispelling cold, relieving itching and deodorizing, resolving stagnation for tranquilization, vanquishing toxicity, and treating sores are selected to be combined; the no-scar scald ointment has the obvious curative effect on scalds, incised wounds, gunshot wounds, traumas, rheumatism and the like.