The invention discloses a blood circulation promoting ointment and a preparation method thereof. The blood circulation activating ointment comprises components in parts by weight as follows: 10-20 parts of donkey-hide gelatin, 40-70 parts of tiger bone glue, 1-7 parts of safflower, 20-30 parts of honeysuckle flowers, 8-18 parts of frankincense, 10-20 parts of myrrh, 10-18 parts of peach kernels, 30-40 parts of garden balsam stems and 1,500-2,200 parts of vinegar. The whole formula is clear in treatment rule, and all medicines are reasonably compatible with one another to have a synergistic effect; the ointment has functions of diminishing inflammations, relieving pain, promoting blood circulation, removing blood stasis and the like, has good effects on treating diseases such as joint sprains, muscle strains, fractures, dislocation, pain in necks, shoulders, waists and lower extremities, synovitis and the like, takes effect quickly and is high in cure rate (the cure rate is 98.5% and the total effective rate is 99.5%). The ointment achieves the treatment purpose through medicine smearing, causes less pain to patient and takes effect quickly.