The invention relates to the technical field of daily chemicals, and particularly discloses shampoo for removing dandruff and relieving itching and a preparation method of the shampoo. Active components of the shampoo consist of cortex phellodendri, radix scutellariae, radix gentianae, sanguisorba, fructus kochiae, cortex dictamni, cortex pseudolaricis, radix sophorae flavescentis, Chinese pricklyash and rhizoma coptidis, which are in compatibility and complement each other, so that good comprehensive properties are achieved, and the shampoo has good efficacy of relieving itching, resisting sebaceous flux, resisting bacteria, resisting fungi, diminishing inflammation and resisting sensitivity, solves the problems of dandruff, scalp pruritus, inflammation and the like, restores scalp health, is safe in components, and can be used for a long term. A compound surfactant is used, so that favorable using feeling can be given for products. The preparation technology is simple, the production cost is low, and industrial production is facilitated.