The invention discloses a medicine for treating lumbar disc herniation and a preparation method thereof. The medicine is prepared by radix angelicae pubescentis, loranthus parasiticus, radix angelicae, ligusticum wallichii, notopterygium roots, caulis piperis futokadsurae, sargentg loryvine, ramulus mori, radix clematidis, pseudo-ginseng, astragalus mongholicus, angelica sinensis, radix paeoniae alba, caulis spatholobi, aalty cortex eucommiae, medicinal cyathula roots, teasel roots, drynaria rhizome, rhizoma cibotii, herba epimedii, golden cypress and pachyrhizua angulatus which are evenly mixed. After being crushed, the mixture is evenly mixed with frankincense and myrrh with the formula amount, and 70%-95% (V/V) ethanol is utilized to perform heating, reflux and extraction for two to three times. Each extraction lasts for one to three hours, filtrate is filtered and merged, the ethanol is recovered, the filtrate is concentrated to thick paste with relative density ranging from 1.05 to 1.35 under 60 DEG C, menthol crystal and borneol are added into the thick paste, and the thick paste is evenly stirred and then prepared into various different preparations. The medicine for treating lumbar disc herniation adopts more than twenty raw material medicines for matching and jointly increasing effects of nourishing liver, tonifying kidneys, removing coldness and damp, promoting qi, activating blood circulation and clearing and activating channels and collaterals, has good curative effects on a lumbar disc herniation disease, and has no side effects. The recurrence rate is extremely low.