The invention discloses an ointment for treating burn by promoting tissue regeneration and skin growth and a preparation method of the ointment. The ointment consists of the following components in parts by weight: 5-15 parts of cephalosporin, 5-15 parts of gentamicin, 5-20 parts of ginseng, 10-20 parts of propolis, 5-20 parts of radices lithospermi, 10-20 parts of scutellaria baicalensis, 10-20 parts of montmorillonite, 6-20 parts of rheum officinale, 10-20 parts of a human placenta tissue fluid, 0.5-5 parts of borneol, 5-15 parts of vitamin B6, 8-15 parts of vitamin C and 200 parts of an ointment matrix. The ointment disclosed by the invention can be used for rapidly repairing local damaged tissue, accelerating the healing of a wound surface and remarkably shortening the healing days of III-degree burn.