The invention relates to traditional Chinese medicament liquid for treating burnt and scald through both topical application and oral administration and a preparation method thereof. The traditional Chinese medicament liquid is prepared from living sponge gourd juice, Japanese honeysuckle and Chinese lobelia. Topical application of the liquid does not induce burning pain of wound, allows spreading, spraying, smearing and coating, has the effects of clearing away heat, relieving pain, eliminating inflammation and promoting tissue regeneration, and has the characteristics of quick healing, no scar left, and the like. Oral administration of the liquid has the effects of clearing away heat, eliminating inflammation and moistening throat; and for burnt of upper respiratory tract and scald of oral cavity and throat, the liquid is directly applied at the burnt or scald part through drinking or buccal application. The traditional Chinese medicament liquid provided by the invention has particularly distinct effect through the treatment combining external application and oral administration.