The invention discloses an adhesive plaster for promoting blood flow and setting fracture and a preparation method thereof. The adhesive plaster is prepared from monarch medicines, ministerial medicines and adjuvant medicines, wherein the monarch medicines comprise rehmannia root, gardenia, chuanxiong rhizome, green tangerine orange peel, curcumae rhizoma, phellodendri, kuhseng, Chinese water chestnut, bletilla tuber, rhubarb, wolfberry root-bark, mint, Chinese angelica root, licorice, rhizoma et radix notopterygii, weeping forsythia, tangerine peel, nutgrass galingale rhizome, costusroot, sesame oil and tung oil; the ministerial medicines comprise colophony, yellow wax, white wax, rhizoma corydalis and minium; and the adjuvant medicines comprise Centipede, borneol and muskiness. Conforming to the traditional Chinese medicine principles that the kidney is important for the bones, the new bones can not grow with stasis of blood, and the like, the adhesive plaster has scientific compatibility, and has the curative effects of setting fracture, promoting blood flow, dissipating blood stasis, diminishing inflammation, promoting the subsidence of swelling, promoting the circulation of qi, smoothing collaterals, expelling wind, removing dampness, and the like; and the adhesive plaster has no toxic and side effects.