The invention discloses a palm moxibustion solution for treating pain and a preparation method thereof. The palm moxibustion solution is prepared from the following main raw materials: 85 to 95 partsof medical alcohol, 1 to 2 parts of saffron extract, 1.5 to 4.5 parts of ginger root oil, 0.02 to 0.08 part of myrrh oil, 0.02 to 0.08 part of herba speranskiae tuberculatae extract, 0.02 to 0.08 partof rhizoma chuanxiong extract, 0.1 to 0.5 part of folium artemisiae argyi oil, 0.01 to 0.05 part of borneol, 0.02 to 0.08 part of keruing, 0.001 to 0.003 part of capsaicin, and 0.05 to 0.3 part of clove oil. The palm moxibustion solution can effectively treat cervical spondylosis, neck, shoulder, low-back and leg pain caused by lumbar spondylosis, bone hyperplasia, neck, shoulder, low-back and leg pain caused by muscle strain, muscle soft tissue contusion caused by traumatic injury, swelling and pain, rheumatism, joints and muscle numbness and pain caused by rheumatoid, neuropathic headache,toothache and other nameless pain, and soreness, numbness and pain caused by work fatigue and poor posture. The palm moxibustion solution of the invention has the advantages of simple use, obvious efficacy, low cost, and no dependence and no side effects on a human body.