The invention discloses a Chinese-western medicine compound preparation used for treating cervical leukoplakia and a preparation method thereof. The Chinese-western medicine compound preparation used for treating cervical leukoplakia is mainly prepared from the following main materials and accessory materials: the main materials comprise all-grass of purple cyathocline, root of Juncus setchuensis Buch., Flos Edgeworthlae, Clerodendron petasites, medicinal citron seed, root of clammy hopseedbush, Maesa perlarius and a non-steroid anti-inflammatory agent; and the accessory materials comprise stringy stonecrop herb, dandelion, glossy privet fruit, smallfruit fig aerial root, Pilea japonica, Cynanchum wilfordii, chachi citrus leaf, Cleome viscosa L., propylene glycol alginate and a chitosan-glucan compound. Effective concomponents in traditional Chinese medicines are extracted for preparation of a suppository. According to the invention, traditional Chinese medicinal materials are reasonably selected and combined according to the theory of traditional Chinese medicine and are cooperatively used with western medicinal components; the prepared compound preparation is delivered in the vagina, can locally exert antibacterial, anti-inflammatory, necrotic tissue-removing and granulation-promoting effects and is capable of entering blood circulation under the action of absorption by the vaginal canal to exert liver-coursing, spleen-invigorating, dampness-eliminating, heat-clearing, blood-nourishing and yin-nourishing effects; and the compound preparation comprehensively performs drug effect to realize comprehensive treatment of cervical leukoplakia, and is fast, effective, safe and free of side-effect.