The invention discloses a traditional Chinese medicinal lotion for treating infant scalp folliculitis, and a preparation method thereof. Raw materials for preparing the traditional Chinese medicinal lotion comprise sophora flavescens, Lighiyellow Sophora Root, onion, runcinate knotweed root, laxflower pottsia root, Rhizoma Coptidis, Radix Scutellariae, Bark of Japanese Pagodatree, Achillea sibirca, Leaf of Chinese Pearleaf Crabapple, pomegranate rind, purslane, Carpinus cordata B1.var.chinensis Franch., blumea camphor, vinegar, Bletilla striata, Trillium tschonoskii Maxim., honey-fried licorice root and periostracum cicadae. The lotion is a pure traditional Chinese medicinal preparation, is prepared through suitable compatibility of selected medicinal materials by adopting a modern and advanced medicine pharmacy technology, treats the infant scalp folliculitis in a dampness eliminating, mite dispelling, bacterium and inflammation preventing, swelling eliminating and tissue regeneration promoting way, avoids abuses of antibiotic treatment, is safe, has no toxic side effects, directly acts on whole scalp, can comprehensively improve the scalp environment, is simple to operate, can be easily accepted by children, allows effective components of medicines to directly act on lesions, kills pathogenic bacteria, effectively prevents growth of bacteria on skins nearby the lesions, rapidly and effectively treats the infant scalp folliculitis, and also has the advantages of substantial curative effect and difficult recurrence after cure.