The invention discloses a thermal transfer ribbon which comprises an ink layer, a release agent layer, base material and a thermal resistant layer. The ink layer comprises water-dilutable resin, inorganic nanoscale pigment, organic pigment, dispersant, curing agent, deformer and deionized water. The release agent layer comprises organic silicone resin, water-based wax emulsion, talcum powder and deionized water. The base material includes polyester film and thermal-conductive silicone grease. The thermal resistant layer comprises perfluorocarbon, organic silicone resin and deionized water. The invention further discloses a preparation method for the thermal transfer ribbon. The preparation method includes steps of stirring, mixing, drying and the like. The thermal-conductive silicone grease is added to the base material polyester film, using temperature of the thermal transfer ribbon is increased, thermal resistance and adaptability of the thermal transfer ribbon are improved, and printing speed is increased. The thermal resistant layer is added to the thermal transfer ribbon, and accordingly performance of the thermal transfer ribbon is improved. The release layer is added, and accordingly the ink is easier to separate from the base, strippable level is high, printing effect is better, and writing is clearer. The deionized water is used as solvent, and accordingly production cost is reduced, and cost performance of the thermal transfer ribbon is better.