The invention discloses a plaster for activating blood circulation, dissipating blood stasis, dispelling arthralgia and easing pain and a preparation method thereof. The plaster is prepared by the steps of immersing musk, rhubarb, amber, frankincense, myrrh, Chinese angelica, pangolin scales, dipsacus root, pleione rhizome, red peony root, dahurian angelica root, blood of dragon, rhizome of drynaria, wild ginger root, gamboge, herb of diverse wormwood, saffron, notoginseng, Sichuan pepper, anisetree bark, rhizome of Chinese paris, gastrodia tuber, hornet nest, minium, menthol, triperygium wilfordii and calomel into oil according to certain proportion, decocting and cooling, etc. The plaster has no side and toxic effect, has good curative effect on diseases such as rheumatic waist and leg joint pain and swelling, bone and muscle pain caused by hyperosteogeny, female dysmenorrheal, etc. In addition, the plaster has the advantages of high curative effect, short course of treatment and quick action.