The invention provides the preparation and the application of an externally-applied medicine for treating burns and scalds. The preparation comprises the following steps: after selecting medicinal materials, preparing according to the required use quantity in parts by weight: taking garden burnet, dahurian angelica root, white snake oil, powder, fresh bluegrass, radix codonopsis pilosulae, ground beetle, scaly anteater, snow lotus and egg white as main materials; matching with coptis root, honeysuckle stem, mink oil, rehmannia root, angelica, safflower, rhubarb and borneol and processing into powder according to steps. The formula of the invention still keeps pure traditional Chinese medicine components unchanged hitherto, the use method of spraying, spreading, smearing and applying has simple operation, and the invention acts as the medical effects of reducing fever, lessening the virulence of any pathogenic organism, diminishing inflammation, healing and promoting the generation of the muscle. The invention has scientific and reasonable preparation and no adverse reaction, obtains higher social cognitive strength in both the traditional Chinese medicine theory and the actual treatment, has very high cure rate on burns and scalds at the epidermis by a special prescription, has better cure effect on a person who is infected repeatedly, is suitable for transportation and carrying and especially has quick and convenient cure to the accidents of populations. The clinical observation shows that the dosage of a young person needs to be proper, the cure effect is quicker after application, but the final cure effect basically has no difference as long as an adult maintains application.