The invention relates to an externally used traditional Chinese medicine (TCM) composition for relieving pains and a preparation method thereof. The TCM composition is prepared from the following TCM raw materials: radix stephaniae tetrandrae, luffa vegetable sponge, radix rehmanniae, pawpaw, rush, liquorice, akebia stem, safflower, cherokee rose fruit, Chinese magnoliavine fruit, radix asparagi, bamboo shavings, Chinese wolfberry root-bark, great burdock achene, divaricate saposhnikovia root, immature bitter orange, Chinese arborvitae kernel, pagoda tree pod, nutgrass galingale rhizome, morinda root, palmleaf raspberry fruit, plantain herb, rosa davurica, lesser galangal rhizome, semen hoveniae, purslane herb, fresh reed rhizome, medicinal evodia fruit, officinal magnolia bark, yerbadetajo herb, cattail pollen, fructus tribuli, wild buckwheat rhizome, saussurea involucrate and burdock root. Especially when being prepared into externally used preparations, the TCM composition can more effectively relieve the pains caused by injuries of joints and soft tissues, unknown swellings and the like.