The invention belongs to the field of traditional Chinese medicine preparation, and more specifically relates to a liniment used for treating alopecia. The liniment comprises, by weight, 10 to 20 parts of peach seed, 7 to 13 parts of Herba Ecliptae, 5 to 30 parts of Chinese angelica, 5 to 20 parts of wild chrysanthemum flower, 5 to 20 parts of fleece-flower root, 1.4 to 2.6 parts of rhizoma Gastrodiae, 5 to 20 parts of Radix Saposhnikoviae, 1 to 5 parts of Asarum Herb, 10 to 30 parts of Semen Cuscutae, 5 to 10 parts of raw licorice root, and 10 to 30 parts of Tuber of Dwarf Lilyturf. Accordingto a preparation method, the above medicine materials are mixed and crushed, by weight, 200 parts of deionized water is added, an obtained mixture is heated to boiling, and is cooled to as to obtaina finished product. No toxic or side effect is caused; the liniment is safe to use, is capable of preventing symptoms such as neurogenic alopecia, alopecia seborrhoeica, hypotrichosis, and eyebrow reducing, and alopecia of middle and old aged people, alopecia after illness, and postpartum alopecia, protecting the hair, removing scurf and relieving itching, and protecting scalp.