The invention relates to a Chinese medicinal composition for treating burns and scalds. The Chinese medicinal composition is composed of, by mass: 3-5 parts of propolis, 0.5-1 part of borneol, 5-15 parts of phellodendron, 10-20 parts of beeswax, 5-10 parts of Sanguisorba officinalis, 5-10 parts of radix rehmanniae, 5-10 parts of Rhizoma Coptidis, 5-10 parts of rhubarb, 5-10 parts of Scutellaria baicalensis, 1-3 parts of lithospermum, and 450-550 parts of sesame oil. The preparation method of the Chinese medicinal composition includes: grinding borneol, radix rehmanniae, Rhizoma Coptidis, and lithospermum into a fine powder respectively, and sieving the powder by a sieve of 80-120 meshes for standby use; putting sesame oil and beeswax into a pot, conducting heating and stirring simultaneously, and after melting of the beeswax, performing cooling to 70-80DEG C, adding borneol, further conducting cooling to 40-50DEG C, adding the residual components, stirring the mixture uniformly, thus obtaining a thick paste or paste. The Chinese medicinal composition provided by the invention solves the problems of long treatment cycle and slow effect in existing ointments for treating burns and scalds, has the effects of clearing away heat and toxic materials, removing necrotic tissues and promoting granulation, relieving pain, promoting blood circulation and removing blood stasis, and can effectively prevent infection and inhibit scar hyperplasia.