The invention relates to an external traditional Chinese medicine for treating skin diseases. The medicine provided by the invention is composed of paste and tincture, wherein the paste is composed of radix sophorae flavescentis, Chinese violet, coptis, phellodendron bark, rhubarb, cortex dictamni, lithospermum, manyleaf paris rhizome, fructus cnidii, herba patriniae, ampelopsis japonica, fructus kochiae, cynanchum paniculatum, dahurian angelica root, angelica, myrrh, arborvitae tops, pseudo-ginseng, nidus vespae, borax, calamine, vaseline, lanolin and octadecanol; and the tincture is composed of stemona, desmodium, polygonum cuspidatum, phryma leptostachya, garden burnet, golden larch bark, nepal dock root, gallnut, cynanchum paniculatum, felwort, benzoic acid, salicylic acid and 75% ethanol. The external traditional Chinese medicine provided by the invention has the functions of clearing away heat and toxic materials, cooling blood, prompting blood flow, removing beverage, dispersing blood stasis, dispelling wind, eliminating dampness, restraining and sterilizing bacteria, eliminating swelling, relieving itching, dispelling the wind, moistening dryness and killing pests, and the external traditional Chinese medicine has good curative effect on such skin diseases as psoriasis, eczema, dermatitis, tinea corporis, tinea pedis, tinea versicolor and scabies.