The invention discloses an externally-used traditional Chinese medicine composition for treating cervical HPV infection and a preparation method thereof; the composition mainly comprises the following raw material herbs of lithospermum, phellodendron, curcuma rhizome, honeysuckle flowers, radix sophorae flavescentis, radix stemonae, bletilla striata, and borneol; the preparation method comprises the following steps: performing water vapor distillation extraction of curcuma rhizome, performing clathration of volatile oil and borneol by using betw-cyclodextrin; decocting the herb residues, honeysuckle flowers and bletilla striata with water, combining with the distilled fluid, filtering and concentrating the mixed fluid to obtain an extract 1; performing ethanol reflux extraction of lithospermum, phellodendron, radix sophorae flavescentis, and radix stemonae, filtering and concentrating to obtain an extract 2; combining the extract 1 with 2; combining the combined extract with the clathrate, adding pharmaceutically acceptable auxiliary materials to prepare a clinically acceptable dosage form for external use. The traditional Chinese medicine composition of the invention has definite and obvious therapeutic effect on treating cervical HPV infection, overcomes the inconvenience of original powder administration, is convenient for clinical application, and has less side effect.