The invention relates to the field of cosmetics, in particular to balsam and a preparation method thereof. The balsam is prepared from stearic acid, vaseline, wool grease, glycerol, triethanolamine, distilled water, menthol, jasminum essential oil and lavender essential oil. The preparation method includes the following steps that 1, a substrate solution is prepared, wherein firstly, stearic acid, vaseline and wool grease are placed at 80 DEG C to melt to obtain a first mixture solution, secondly, glycerol, triethanolamine, water and pigment are mixed and heated to 81-82 DEG C to obtain a second mixture solution, and thirdly, the second mixture solution is added into the first mixture solution in a trickle mode under a stirring condition, a mixture continues to keep homoiothermy in water bath and is stirred in the same direction to obtain the substrate solution; 2, the substrate solution is doped with the jasminum essential oil and the lavender essential oil, wherein the substrate solution is cooled to about 40 DEG C, menthol, the jasminum essential oil and the lavender essential oil are added, a mixture is stirred to be uniform and cooled, and a balsam product is obtained. The balsam is smooth in texture, proper in hardness and easily absorbed by the skin, and has the effects of refreshing users and eliminating fatigue.