The invention relates to a gel paste preparation for treating osteoarthritis and a preparation method thereof. The active ingredient of the gel paste preparation is prepared from the following raw materials: fructus psoraleae, astragalus membranaceus, bidentate achyranthes root, teasel root, eucommia bark, rhizoma drynariae, pawpaw, suberect spatholobus stem, shinyleaf pricklyash root, frankincense, myrrh, paniculate swallowwort root, cortex phellodendri amurensis, rheum officinale, dried ginger, safflower carthamus, asarum, chillies, camphor, borneol, menthol, methyl salicylate and turpentine oil. The invention further provides the preparation method for the gel paste preparation. The gel paste preparation provided by the invention is accurate in treatment effect, high in safety, convenient to use and low in cost, has no side effect, and has a better effect than that in the prior art in the aspect of treating various types of arthritis and arthropathy of muscles and bones caused by blocking merdian and collateral channels by wind cold dampness.