The invention belongs to the technical field of traditional Chinese medicines, and relates to a traditional Chinese medicine for treating haemorrhoids, chilblain and pressure sore and a preparation method thereof. The traditional Chinese medicine is prepared from the following bulk drugs in parts by weight: 3-5 parts of calomel, 3-5 parts of yellow lead, 4-6 parts of myrrh, 3-4 parts of frankincense, 6-7 parts of dragon's blood, 4-6 parts of pangolin, 7-8 parts of vermilion, 4-6 parts of borneol, 4-6 parts of catechu, 10-15 parts of yellow wax, 4-6 parts of centipede, 2-3 parts of cantharis, 2-3 parts of castor bean and 4-5 parts of scorpion. In the invention, the raw materials of the traditional Chinese medicine are reasonably combined together and complement each other so as to realize the efficacies of eliminating toxic material and dissipating stagnation and promoting tissue regeneration and wound healing, thus achieving the purpose of effectively treating haemorrhoids, chilblain and pressure sore.