The invention discloses an iliacus muscle oral liquid and a preparation method thereof. The iliacus muscle oral liquid comprises the components of, by weight, 27 parts of frankincense, 46 parts of myrrh, 91 parts of white peony root, 27 parts of rhizoma corydalis (processed with vinegar), 46 parts of pseudo-ginseng, 27 parts of radix aucklandiae, 46 parts of safflower carthamus, 91 parts of radix curcumae, 183 parts of radix angelicae pubescentis, 46 parts of radix achyranthis bidentatae, 183 parts of large-leaved gentian, 46 parts of cassia twig, 27 parts of resina draconis and 27 parts of semen strychni (fried). The iliacus muscle oral liquid is a pure traditional Chinese medicine composition oral liquid preparation and has the functions for hypertrophic myelitis, cervical spondylosis, heel spurs, hypertrophic arthritis, kashin-beck diseases, etc. Compared with iliacus muscle pills, iliacus muscle tablets, iliacus muscle capsules which are described in Chinese medicine ministerial standards, the iliacus muscle oral liquid has the advantages of small dosage, good taste, convenience for taking, relatively fast absorption, high bioavailability, stable quality, simple production process, etc.