The invention discloses a Chinese medicinal composition for treating scald and a preparation method of the Chinese medicinal composition. The composition the following materials by weight: 13-18 parts of Rhizome Atractylodes Lancea, 10-20 parts of Plumbum Preparatium, 13-18 parts of Flos Carthami, 1-3 parts of Borneolum, 3-8 parts of Radix Glycyrrhizae, 3-8 parts of Folium Artemisiae Argyi, 8-12 parts of Periostracum Cicadae, 6-10 parts of Herba Andrographitis, 5-10 parts of Oleum Rosae Rugosae, 8-12 parts of Aloe, 8-12 parts of Lavendar, 10-20 parts of Fructus Cucumidis Sativi, fried 3-5 parts of Semen Sojae Atricolor, 8-12 parts of Sweet Potato Leaf, 3-8 parts of Stigma Maydis, 5-10 parts of Radix Arnebiae, 3-8 parts of Radix Sanguisorbae, 5-10 parts of Cortex Moutan, 8-12 parts of Radix Rehmanniae, 8-12 parts of Radix Scrophulariae, 5-10 parts of Radix Paeoniae Rubra, and 3-5 parts of Herba Cephalanoploris. The preparation method includes pulverizing the above materials, formulating into paste with sterile water, coating, covering with sterile cotton paper, and binding. The composition can treat scald of various degrees; and has advantages of pure Chinese medicinal materials, no side effects, pain relieving, rapid on-set, good curative effect, and no scar after healing for scald without damaging hair root.