Objective To explore the effect of external therapy of Traditional Chinese Medicine in the rehabilitation of patients with shoulder pain after thalamic stroke. Methods One hundred patients with shoulder pain after thalamic stroke were selected as the research subjects, and they were randomly divided into control group or observation group, with 50 cases in each group. Patients in the control group were treated with routine rehabilitation methods, based on which the observation group received external therapy of Traditional Chinese Medicine for treatment. Patients in both groups were treated for 30 days. Visual analogue scale (VAS) score for shoulder joint pain, range of motion of shoulder joint (flexion, abduction, external rotation) were compared between the two groups before treatment, and 7, 15, and 30 days after treatment. The clinical efficacy was compared between patients of the two groups after 30 days of treatment. Results There were statistically significant differences in VAS score for shoulder joint pain, range of motion of shoulder joint flexion and external rotation between the two groups (P<0.05). The VAS score for shoulder joint pain in the two groups tended to decrease with time, and the range of motion of shoulder joint flexion, abduction and external rotation tended to increase with time (P<0.05). There was an interaction effect between grouping and time of the aforementioned indices (P<0.05). The VAS score for shoulder joint pain in the observation group was lower than that in the control group, while the range of motion of shoulder joint flexion and external rotation were larger than those in the control group 7, 15 and 30 days after treatment, and the range of motion of shoulder joint abduction was larger than that in the control group 15 and 30 days after treatment (P<0.05). The overall effective rate in the observation group was higher than that in the control group (P<0.05). Conclusion On the basis of routine rehabilitation therapy, Traditional Chinese Medicine external therapy is significantly effective in the treatment of patients with shoulder pain after thalamic stroke, which can effectively improve the symptoms of shoulder joint pain and promote the recovery of shoulder joint function.