The invention discloses to an external Chinese medicinal composition for treating calvities and alopecia areata and a preparation method thereof. The Chinese medicinal composition mainly comprises the following raw material medicaments: tuber fleeceflower root, radix rehmanniae praeparata, borneol, camphor, mentha haplocalyx, cassia twig, angelica dahurlica, incised notopterygium rhizome, kudzuvine root, szechuan lovage rhizome, flos chrysanthemi, baical skullcap root, lightyellow sophora root, divaricate saposhnikovia root, weeping forsythia, red paeony root, white paeony root, peach seed, safflower, fineleaf schizonepeta herb, nutgrass galingale rhizome, notoginseng root and the like. The Chinese medicinal composition of the invention can be prepared into any external preparation according to the conventional method of Chinese medicinal preparations. The Chinese medicinal composition can improve symptoms such as calvities, alopecia areata and the like quickly and obviously, promotes hair to grow, has the effects of hair growth, hair nourishing, hair care, hairdressing and the like, and has definite clinical effects, quick response and obvious curative effect. The Chinese medicinal composition does not have irritation to skin or dependence, and has the advantages of low cost, no toxic or side effect and the like by combining medicaments formulated by National Formulary completely and adopting a method of external treatment.