The invention discloses a combination drug for the treatment of colds, coughs and acute and chronic bronchitis and a preparation method thereof. The combination drug includes twenty six medicines, which are ephedra vulgaris, ligusticum chuanxiong hort, angelica, stemona, white mustard seed, shizandra, liquorice, biond magnolia flower, dried orange peel, pinellia tuber, perilla fruit, balloon flower, ligusticum, peppermint, radix peucedani, common coltsfoot flower, pepper, epimedium, raidx astragali, Dangshen, dried ginger, herb of fortune eupatorium, common rush, mulberry root bark, radix bupleuri and asarum. The preparation method is as follows: volatile oil is extracted from radix bupleuri, pepper, peppermint, biond magnolia flower, ligusticum chuanxiong hort, angelica, radix peucedani,asarum and ligusticum by steam distillation, and the distillate is collected in another container; after distillation, the water solution, dregs and other ingredients are decocted for three times after being added with water, the decoction solution is mixed and filtered, the filtered solution is concentrated into clear plaster, ethyl alcohol is added until the amount of alcohol reaches 65 percent, and the mixture is mixed uniformly, frozen and filtered, the ethyl alcohol is recycled, the filtered solution is concentrated again, the ethyl alcohol is added until the amount of alcohol reaches 75percent, and then the solution is mixed well, frozen and filtered, the ethyl alcohol is recycled until the filtered solution has no smell of alcohol, and the drug is obtained.