The invention relates to a traditional Chinese medicinal lotion for treatment of papular type urticaria and a preparation method thereof. The lotion comprises the following raw materials by weight: 10-20 parts of mint, 10-20 parts of camphor, 20-40 parts of radix sophorae flavescentis, 10-20 parts of Schizonepeta, 10-20 parts of Saposhnikovia divaricata, 10-20 parts of purslane, 10-20 parts of beef-steak plant leaf, 10-20 parts of dried tangerine or orange peel, 10-20 parts of the root of kudzu vine and 10-20 parts of licorice. The preparation method is as below: crushing all raw materials into traditional Chinese medicine granules; filling a glass container with the granules, adding alcohol, mixing, conducting ultrasonic treatment, sealing the lid of the glass container, and soaking to obtain a mixture; filtrating the soaked mixture to obtain a filtrate and filter residues; adding ethanol into the filter residues, centrifuging, taking a supernatant, and mixing the supernatant with the filtrate to obtain a traditional Chinese traditional medicinal extract; and concentrating the traditional Chinese medicine extract to obtain the traditional Chinese medicinal lotion for treatment of papular type urticaria. The traditional Chinese medicinal lotion has obvious curative effect on papular type urticaria, and has the characteristics of good curative effect, little side effect, and no recurrence.