The invention relates to the technical field of capsules and preparation methods thereof, in particular to a Shenqi capsule and a preparation method thereof. The Shenqi capsule is prepared by bulk drug including, by weight, from 3 to 9 parts of ginseng, from 15 to 30 parts of astragalus, from 3 to 9 parts of turmeric, from 3 to 9 parts of safflower carthamus, from 0.5 to 1 part of scorpion powder, from 0.5 to 1 part of centipede powder and from 1 to 3.5 parts of microcrystalline cellulose. The preparation method includes steps of adding water in the ginseng, the astragalus, the turmeric and the safflower carthamus; mixing; decocting twice for 60 minutes every time; combining decoction liquid; filtering; concentrating into clear cream with the relative density ranging from 1.05 to 1.35 (atthe temperature of 50-65 DEG C); treating the clear cream in a vacuum drying manner to obtain clear cream powder; taking scorpion and centipede; respectively grinding the scorpion and the centipede into powder; blending the scorpion powder and the centipede powder with the clear cream powder and pharmaceutic adjuvant; and filling the mixture into capsules. The Shenqi capsule can nourish qi and promote blood circulation to remove meridian obstruction, can be widely used for treating arthralgia of joints such as knee joints, hand bone joints and the like, can obviously remove clinic symptoms ofpatients suffering from osteoarthritis, obviously takes effect, and is fine in treatment effect and free of toxic and side effects.