The invention belongs to the technical field of traditional Chinese medicine, and discloses a composition for external use for treating rheumatalgia and a preparation method thereof. The traditional Chinese medicine composition is prepared from the following components in parts by weight: 1-3 parts of flos carthami, 2-6 parts of rhizoma chuanxiong, 1-4 parts of rhizoma seu radix notopterygii, 1-4parts of radix angelicae pubescentis, 4-10 parts of rhizoma zingiberis preparata, 4-10 parts of radix et rhizoma asari, 1-3 parts of radix paeoniae alba, 1-3 parts of herba lycopodii, 1-3 parts of lycopodiastrum casuarinoides, 2-6 parts of herba menthae, 4-10 parts of diclofenac sodium powder, 0.04-0.1 part of water-soluble capsaicin, 0.2-1 part of vanillyl butyl ether, 0.2-1 part of laurocapram and 0.2-1 part of wintergreen oil. The preparation method comprises the step that A, the diclofenac sodium powder, the water-soluble capsaicin, the vanillyl butyl ether, the laurocapram, the wintergreen oil, the flos carthami, the rhizoma chuanxiong, the rhizoma seu radix notopterygii, the radix angelicae pubescentis, the rhizoma zingiberis preparata, the radix et rhizoma asari, the radix paeoniaealba, the herba lycopodii, the lycopodiastrum casuarinoides and the herba menthae are added into white spirit for soaking and placement to obtain medicinal wine. The composition for the external use for treating the rheumatalgia and the preparation method thereof have the characteristics of promoting blood circulation for removing obstruction in collaterals, dispelling wind, eliminating dampness,relieving pain and being convenient to use.