A LC resonance giant magneto-resistance effect compound wire and the preparation method thereof, belong to the technical field of magneto-dependent sensor and information function material as well as their preparation. The compound wire consists of a metal wire (1), a separation layer (2), a soft magnetic layer (3), and a terminal (4). The separation layer (2), a dielectric body, is attached on the surface of metal wire (1) in the way that the terminal (4) of the metal wire (1) is exposed to the outside. The soft magnetic layer (3) is attached on the surface of the separation layer (2), and the terminal (4) and the soft magnetic layer (3) are the two lead-out ends of the compound wire. In preparation, the surface of the metal wire (1) except for the terminal (4) is smeared with the separation layer (2), and a soft magnetic layer (3) in a chemical way is provided on the separation layer (2), thus producing the LC resonance giant magneto-resistance effect compound wire. The compound wire has the advantages of simple technique, low cost, high giant magneto-resistance effect, high disturbance resistance, small geometrical size, and convenient and reliable application in appliances.