The invention discloses a medicine for treating qi-deficiency and blood-stasis type keloid and a preparation method thereof. The medicine comprises the following various raw medicinal materials: honeysuckle, philippine flemingia root, berberis thunbergii, dandelion, maidenhair, Chinese violet, radix gaultheria, caulis spatholobi, stir-baked squama manitis, angelica citriodora hance, semen plantaginis, ixora chinensis roots, coix seeds, poria cocos, polygala aureocauda dunn, lithospermum, honewort, radix paeoniae rubra, boea hygrometrica, nepeta glechoma benth, radix clematidis, cape jasmine, earthworm, pittosporum roots, Chinese dates, codonopsis convolvulacea, musk, fructus viticis, stephania japonica, duckweed and ground beeltle. The medicine disclosed by the invention has the beneficial effects of taking dispersing blood stasis, detoxifying and dredging collaterals as a treatment principle, has the effects of dispelling wind and clearing heat, activating blood and promoting menstruation, promoting urination and purging intense heat, and tonifying qi and blood, and is mainly used for treating qi-deficiency and blood-stasis type keloid; the medicine has the advantages of being fast to become effective, high in effective rate, definite in curative effect, short in treatment course, free from toxic and side effects, low in price and the like.