A Chinese medicinal ointment capable of diminishing inflammation, reducing swelling, clearing heat, and removing dampness and being used to treat a skin disease and a preparation method and application thereof. The Chinese medicinal ointment is made of 10-30 parts by weight of Sarcococca vagans and 1-5 parts by weight of mint. Also provided is an application of Sarcococca vagans in preparing a drug for diminishing inflammation and reducing swelling.