A topical composition and method of treating chronic pain are provided. The topical composition contains cannabidiol (CBD) and plant extract and is well suited to treat chronic pain while also avoiding the negative side effects caused by commonly used anti-inflammatory and pain-treating compounds. When the topical composition is applied to the skin at the locus of pain and allowed sufficient time to absorb, the pain is reduced or even eliminated. The topical compositions also show therapeutic effect on mucosal tissue and internal tissues of humans or animals.