The invention discloses a traditional Chinese medicine preparation for treating costal chondritis. The preparation comprises 20-30g of corydalis tuber, 10-20g of radix scrophulariae, 10-20g of seaweed, 10-20g of curcuma aromatic, 10-20g of stir-baked squama manitis, 10-20g of flos carthami, 10-20g of pseudo-ginseng, 10-20g of raw oyster shells, 10-20g of cassia twig, 8-15g of prepared olibanum, 8-12g of Chinese angelica, 8-12g of dried radix rehmanniae, 8-12g of peach kernels, 8-12g of radix isatidis, 8-12g of trichosanthes, 8-15g of honeysuckles, 8-15g of red peony roots and 8-15g of liquorice. The medicines are excellent in compatibility and reasonable in formula and together play roles of dispersing stagnated liver qi for relieving qi stagnation, promoting qi circulation and removing obstruction in the collaterals, activating blood circulation to dissipate blood stasis, resolving phlegm and softening hard mass and diminishing swelling and relieving pain. The medicines are matched with dregs which are externally applied, so that the efficacy can pass through stratum corneum intercellular space of skin, dead walls of follicles, sweat gland and sebaceous gland and the medicines are absorbed and directly permeate to cartilage so as to irritate nerve endings. Through reflection, the medicines expand blood vessels, promote local blood circulation and improve nutrition of peripheral tissues so as to realize the purpose of diminishing swelling and inflammation and relieving pain.