The invention relates to Chinese medicinal liquor for treating rheumatoid arthritis and a preparation method thereof. The Chinese medicinal liquor comprises the following raw materials: eucalyptusglobulus labill (eucalyptus globulus fruit) in a formulation of decoction pieces, ovientvine, cissus assamica, white paeony root, tangerine peel, papaya, largehead atractylodes rhizome, white liquor and the like. The Chinese medicinal liquor has the advantages of mild medicinal properties, small toxic and side effects, less using amount, simple administration, quick response, good effect, short course of treatment, compact formula, short cure time, 70 percent of cure rate and 99.1 percent of total effective rate, and has the effects of warming channel, expelling cold and dehumidifying, activatingblood, expelling stasis and freeing network vessels, tonifying spleen and stomach, tonifying middle-Jiao and qi, regulating unusual immunologic function of the organism, resisting inflammation, relieving pain and treating both sympotoms and root causes. The preparation method not only meets the traditional Chinese medicine process, but also is in accordance with modern pharmacology research results, has the advantages of simple equipment, energy saving, water saving, low product cost and no pollution, and solves the problems that patients with the rheumatoid arthritis have to take medicamentsfor a long time.