The present invention provides a composition for external application treatment of hysteromyoma and ovarian cysts, and a preparation method thereof, wherein the composition is mainly prepared from the following raw materials: radix ginseng rubra, large root panax notoginseng, fritillaria cirrhosa, leech, ground beetle, complete centipede, cassiatwig, tuckahoe, tree peony bark, semen persicae, amber, faeces trogopterori, prunella vulgaris, drifting seaweed, licorice root, prepared rheum palmatum, eupolyphaga, gadfly, grub, toxicodendron vernicifluum, semen armeniacae amarum, cynanchum otophyllum, cortex moutan, white gourd seed, and mirabilite. According to the present invention, the traditional Chinese medicine preparations with main effects of blood circulation activating and qi promoting are used to prepare the hysteromyoma, and after the medication, the patient hysteromyoma can be controlled to varying degrees, the hysteromyoma size is reduced, and Menoxenia, waist and abdomen pain, and other symptoms are significantly improved. In addition, the pharmaceutical composition of the present invention provides significant treatment effects on ovarian cysts, and has characteristics of low side effect and low treatment cost.