The invention discloses a preparation method of traditional Chinese medicine unguent for treating small area scalding. The preparation method comprises the following aspects that (1) extract preperation: smashing flos gmelinae and circaeaster agristis herb respectively, carrying out low temperature storage, ultrasonic oscillation and reflux extraction; (2) fermentation liquor preperation: smashingplantain herb, herba abri, radix bupleuri, lycopodiastrum casuarinoides herb, sargentgloryvine stem and folium callicarpae formosanae [leave ]are mixed after being smashed, and the obtained mixed powder is boiled out and fermented by adding water; (3) medicine powder preperation: powdering Baicaowang and caulis schisandrae rubriflorae, baking, carrying out sealed soaking and reflux extraction; (4) ginseng-lucid ganoderma powder preperation: powdering ginseng and lucid ganoderma, milling and carrying out sealed fermentation; (5) unguent preperation: adding the extracted medicine powder, the flos gmelinae extract and the circaeaster agrestis herb extract into the fermentation liquor, heating, then adding the ginseng-lucid ganoderma powder, ginkgo nut oil and bee milk, mixing, then adding attapulgite powder into the fermentation liquor, and stirring to be gelatineous, thereby obtaining the traditional Chinese unguent; and (6) using method introduction: applying the traditional Chinese medicine unguent to a scalding position and wrapping with the outer portion of plaster paper, and irradiating the plaster paper with infrared rays.