The invention relates to a self-emulsified terbinafine hydrochloride cream and preparation method thereof, comprising, main medicaments, terbinafine hydrochloride of 0.5-3%, TEFOSE63 (polyethylene glycol-7 stearate) of 6-18%, span 80 of 1-6%, glycerin monostearate of 1-5%, and light liquid petrolatum of 1-4%; the remainder being purified water. Self-emulsifier, surfactant and solvent are heated to 75-80 DEG C, rapidly stirred for 30-45 minutes after complete dissolution, and cooled to around 40 DEG C; maintaining the temperature, the terbinafine hydrochloride is added and stirred continuously; triethanolamine of proper amount is added to regulate the pH value between 4-6, vacuumized, and continuously stirred to the room temperature to obtain the cream with good brightness, good coating ability, less consistency change with the environmental temperature change, good stability and transdermal absorption. Compared with the traditional preparation technology, the preparation method thereof is simple in operation, low in the energy consumption and low in device investment.