The invention discloses a cancer inhibition and flesh engendering medicine for treating burns, scalds, the internal and external ulcer and the cataract, and its preparation method, and relates to the medical field. The medicine is prepared from the following raw materials, by weight, 25-30 parts of dahurian angelica root, 15-30 parts of Lithospermum erythrorhizon, 15-25 parts of camphor, 10-15 parts of borneol, 25-40 parts of Radix Sanguisorbae, 10-35 parts of ocean nitrate, 12-30 parts of Cattail Pollen, 10-42 parts of Nodus Nelumbinis Rhizomatis, 10-45 parts of charred Chinese Arborvitae Twig, 10-40 parts of Crinis Carbonisatus, 12-45 parts of Copperleaf herb, 10-35 parts of Bletilla striata, 10-30 parts of Cogongrass rhizome, 10-30 parts of Yerbadetajo Herb, 10-40 parts of Agrimonia eupatoria, 10-40 parts of Japanese Thistle Herb, 10-40 parts of Herba Cirsii, 10-35 parts of Rubia cordifolia, 10-40 parts of Monochoria vaginalis Presl, 1-10 parts of Herba Taraxaci, 10-40 parts of Ottelia alismoides, 10-25 parts of Spora Lygodii, 1-30 parts of Herba Violae and 1-30 parts of honeysuckle flower. The medicine has the advantages of anti-inflammation, pain relieving, flesh engendering without scars, bleeding stopping, restoration, fire purging, detoxification, phlegm reduction and vein relaxing, can treat severe burns and scalds, the cataract and diabetes, and inhibit the esophagus cancer and the stomach cancer.