The invention belongs to the field of medicines and particularly relates to an emulsion medicine for treating scald and burn and a preparation method thereof. The emulsion medicine for treating scald and burn includes following components, by weight, 0.05-0.25 parts of an extract of dioscorea zingiberensis, 1.0-2.0 parts of berberine, 0.12 parts of calcium oxide, 2.5 parts of borneol, 1.0-2.0 parts of camelia oil, 10 parts of glycerin and 90 parts of water. The emulsion medicine is prepared by mixing the raw materials uniformly to obtain a yellow emulsion. The invention, by means of utilization of characteristics of anti-microbial, anti-inflammation, anti-infection, pain relieving, analgesia, scab promoting and the like of the raw materials, provides a novel treatment liquid medicine which is used for treating scald and burn. The liquid medicine can enable scald and burn to be healed quick, is good in effects and is free of scar retaining.