The invention relates to a traditional Chinese medicine preparation for treating postherpetic neuralgia and a preparing method thereof. The preparation is prepared from following raw material medicines by weight: 14-16 parts of angelica dahurica, 12-18 parts of radix paeoniae alba, 15-25 parts of combined spicebush root, 1-3 parts of air potato, 8-10 parts of processed frankincense, 8-10 parts of processed myrrh, 3-5 parts of panax notoginseng, 1-3 parts of ligusticum wallichii, 5-7 parts of rhizoma corydalis, 8-10 parts of mint, 5-7 parts of draconis resin, 2-4 parts of borneol, 5-7 parts of licorice, 2-4 parts of manchurian wildginger, 10-14 parts of angelica sinensis, 5-8 parts of clove, 3-5 parts of nux vomica and 10-20 parts of azone having a concentration of 1%. The beneficial effects of the preparation and the preparing method are that: (1) local blood circulation is improved, blocked nerves are allowed to be clear, pain arresting effects are good, and the preparation is refreshing, cool and comfort; (2) external plaster application on affected parts can draw out toxins, remove blood stasis, and intercept virus spread, and the curative rate is high; and (3) the preparation is free of sequelae, convenient to use, free of side effects, rapid in production of effects, short in curative course, high in curative rate and convenient to carry.