The invention discloses a traditional Chinese medicine for eczema, measles and dermatitis treatment and a preparation method thereof; the invention mainly comprises phellodendron, foetida, atractylodes, dittany skin, kudzuvine root, magnolia officinalis and licorice. The traditional Chinese medicine of the invention has the efficacy of clearing heat and wetness, reinforcing spleen and elevating yang, invigorating spleen to replenish qi, and expressing measles. Meanwhile, the invention mainly treats inducing eruptions, boils and sores, eczema and pudendal itch, unsmooth measles dispersing and damp-heat arthralgia pain, swollen sore throat and other syndromes, and has the advantages of simple formula, easy production, convenient taking by the patients, obvious efficacy and wide application value.