The invention relates to a traditional Chinese medicinal preparation for treating oral inflammation and a preparation method thereof. The effective components of the traditional Chinese medicinal preparation are prepared from the following raw materials: ixeris japonica, poinsettia, bulbophyllum radiatum lindl, alpinia katsumadai, glabrous sarcandra herb, mulberry root, ajuga pantantha hand.mazz, hypericum wightianum, sculellaria barbata, ludwigia hyssopifolia, rattletop, eupatorium, savatier monochasma herb, indigofera tinctoria, hispid arthraxon and figwort root. The traditional Chinese medicinal preparation has the effects of invigorating spleen and supplementing qi, sterilizing and diminishing inflammation, removing toxicity and arresting sore, relieving pain and promoting tissue regeneration, can be used for repairing and activating damaged cells in the oral cavity and reducing the number of bacteria in the oral cavity, has an excellent treatment effect on dental ulcer, bad breath, gingivitis, periodontitis, swollen sore throat and other oral inflammations, is short in course of treatment and long in acting time, is safe, does not have toxic or side effect, and is a traditional Chinese medicinal preparation worthy of wide popularization.