Belonging to the technical field of traditional Chinese medicine preparation methods, the invention relates to a preparation method of a Chinese medicinal lotion treating insomnia type closed fractures. Current treatment of insomnia type closed fractures usually adopts western medicines, and the drawback is that certain side effects exist. The technical scheme of the invention consists of: taking spina date seeds, Flos Albiziae, Caulis Polygoni Multiflori, rhizoma anemarrhenae, radix pseudostellariae, black-bone chicken, kohlrabi, arillus longan, largehead atractylodes rhizome, radix paeoniae alba, lotus, American ginseng, angelica, lotus seeds, Codonopsis, Fructus Alpiniae Oxyphyllae, astragalus, polygonatum, polished round-grained rice, rhizoma zingiberis, Tender Catchweed Bedstraw Herb, Dysosma versipellis, Radix Stellariae, Oxalis corniculata, cascara, veronicastrum herb, Daghestan Sweetclover Herb, Cassia occidentalis, common alstonia, lophatherum gracile, Flos Buddlejae, mung beans, dandelions, Sedum, perny false fairybells rhizome, shrubby breynia, small-leaved desmodium, Physalis alkekengi, Jeffersonia dubia, Uniflower Swisscentaury Roots, False hellebore and licorice, immersing the Chinese herbal medicines in water, then conducting decocting by slow fire, and carrying out filtering to remove residues, thus obtaining a liquid medicine, i.e. the Chinese medicinal lotion treating insomnia type closed fractures. The Chinese medicinal lotion prepared by the method has the advantages of: small toxic and side effects, short treatment course, and high cure rate.