The invention provides a damp-clearing essential oil and a preparation method thereof. The damp-clearing essential oil comprises: 2wt% to 5wt% of essential oil components, and the balance being base oil; the essential oil components comprise the following components in parts by weight: 10-30 parts of oxide essential oil, 5-15 parts of monoterpene alcohol essential oil, 1-3 parts of clove essentialoil, and 2-4 parts of myrrh essential oil. The oxide essential oil, the monoterpene alcohol essential oil, the clove essential oil and the myrrh essential oil have synergistic effects, can enhance the human body constitution, improve the human immunity, relieve the human body fatigue, and be beneficial to sleeping or refreshing the mind, and has the effects of promoting blood circulation to remove meridian obstruction, dispelling wind, clearing dampness, clearing away heat and detoxifying. In addition, the damp-clearing essential oil can also clear and activate the channels and collaterals, please the mood, relieve stress, promote skin microcirculation, increase cell vitality, make the skin smooth and soft, and prevent wrinkles.