The invention relates to the technical field of traditional Chinese medicines, and concretely relates to an external-use liquid medicine for muscle-bone traumatism and a preparation method thereof. The lotion is prepared by the steps of processing raw materials such as radix salviae miltiorrhizae, eupolyphaga sinenesis, radix saposhnikoviae, radix paris polyphyllae, amplexicaule knotweed rhizome, folium sarcandrae glabrae, sixangular dysosma rhizome, semen strychni, folium murrayae paniculatae, garden balsam herb, sticktight herb, scolopendra subspinipes, cocklebur fruit, frankincense, root of indian stringbush, selinum japenious seed, radix stemonae, fructus tribulus terrestris, radix sophorae flavescentis, radix adenophorae, dittany bark, fructus kochiae, pseudobulbus cremastrae seu pleiones, sweet basil leaf, zaocys dhumnades, long-noded pit viper, radix aucklandiae and corium bufonis, decocting at high pressure, refrigeration, microwave ultrasound assisted extracting a solubilizer-organic solvent, evaporating, concentrating and the like. The liquid medicine has multiple efficacies on relaxing tendons and activating collaterals, dissipating blood stasis and relieving pain, promoting blood circulation to remove meridian obstruction, dispelling wind and eliminating dampness, promoting reunion of fractured bones, antisepsis and anti-inflammation, relieving itching, purging toxins and the like, has better curative effects on traumatic injury, fracture, internal lesion caused by overexertion lumbago, pain from rheumatism and other muscle-bone traumatism, and is quick in effect, free of toxic and side effects, simple to prepare, and easy to produce.