The invention relates to a poultice capable of effectively treating tinea manus and pedis and a preparation method thereof. The poultice comprises the following components in parts by mass: 1-3 parts of stellera chamaejasme, 1-3 parts of cortex pseudolaricis, 1-3 parts of spina gleditsiae, 1-3 parts of cottonrose hibiscus leaves, 1-3 parts of cortex dictamni radicis, 1-3 parts of radix sophorae flavescentis, 1-3 parts of cnidium monnieri, 1-3 parts of radix stemonae, 1-3 parts of fructus kochiae, 1-3 parts of pinellia pedtatisecta, 1-3 parts of ilex rotunda, 1-3 parts of rhizoma smilacis glabrae, 1-3 parts of cavalerie mosla herb, 1-3 parts of lead oxide and 1-3 parts of mint camphor, as well as borneol; the preparation method of the poultice comprises the following steps: selecting high-quality stellera chamaejasme, cortex pseudolaricis, spina gleditsiae, cottonrose hibiscus leaves, cortex dictamni radicis, radix sophorae flavescentis, cnidium monnieri, radix stemonae, fructus kochiae, pinellia pedtatisecta, ilex rotunda, rhizoma smilacis glabrae, borneols , cavalerie mosla herb, lead oxide and mint camphor, and removing impurities and dust from the components respectively for standby application; placing in a cloth bag, tying the opening of the cloth bag and placing the cloth bag in cooled boiled water for soaking for half an hour, placing well soaked drugs in an earthenware pot, injecting cooled boiled water 35 mm above the drugs for decocting for 45 min, filtering to obtain drug liquid, injecting again moderately warm boiled water for decocting for 40 min, mixing for decocting to obtain concentrated liquid, adding borneol powder and mint camphor powder, and further concentrating to obtain the poultice.