The invention discloses a traditional Chinese medicine preparation for activating blood circulation to dissipate blood stasis and eliminating stagnation to stop pain, which is prepared from notoginseng, myrrh, mastic, white alum, draconis sanguis, keel, red halloysite, teasel root, sulfur, chuanxiong rhizome, borneol and the like. An external traditional Chinese medicine preparation is prepared by scientific processes. By applying traditional Chinese medicine diagnosis and treatment theories, the clinical demonstration shows that the traditional Chinese medicine preparation disclosed by the invention can be used for treating diseases caused by trauma of bones and muscles, fatigue damage of meridians and collaterals and ache of the waist and knees. The notoginseng, myrrh and mastic are used for activating blood circulation to dissipate blood stasis, the white alum, draconis sanguis and keel are used for stopping bleeding and promoting tissue regeneration, and the teasel root, sulfur, chuanxiong rhizome and borneol are used for activating blood circulation to stop pain, resisting bacteria and diminishing inflammation. The pure traditional Chinese medicine preparation disclosed by the invention can be used for patients with the symptoms of traumatic injury and waist and knee ache to achieve the purposes of activating blood circulation to dissipate blood stasis, stopping bleeding, promoting tissue regeneration, stopping pain, resisting bacteria and diminishing inflammation.