The invention discloses antibacterial and anti-inflammatory Chinese herbal compound gel and a preparation method thereof. The antibacterial and anti-inflammatory Chinese herbal compound gel is prepared from Chinese herbals and auxiliary materials applicable to external preparations; the Chinese herbals comprise Chinese gall gallnut, spina gleditsiae, fructus cnidii, scutellaria baicalensis, tea tree oil, menthol, borneol and the like. The antibacterial and anti-inflammatory Chinese herbal compound gel contains various antibacterial and anti-inflammatory components, and through the synergistic effect of all the raw materials, the antibacterial and anti-inflammatory effects are good, the antibacterial and anti-inflammatory Chinese herbal compound gel does not have irritation to skin, hypersensitivity and toxic or side effect.