The invention relates to a jellyfish and water chestnut drink and a preparation method thereof, wherein the preparation method comprises the following steps: selecting fresh or alum jellyfishes whichare soaked with clean water as raw materials, freezing and then smashing to prepare slurry; adding the jellyfishes slurry into soft water, adjusting the protein concentration to 2-5 percent and the pHvalue to 7.5-8.5, controlling the temperature, adding trypsinase with the consumption of 1, 000-4, 000l/g of substrate protein, preserving heat for 3-5 hours, and carrying out zymohydrolysis, enzymekilling and centrifugalization to obtain a jellyfish polypeptide liquid; selecting high quality water chestnuts to prepare water chestnut original juice; and weighing the following components in percentage by weight: 50-60 percent of jellyfish polypeptide liquid, 30-40 percent of water chestnut original juice, 6-7 percent of sweetening agent, 0.1-0.4 percent of complex stabilizer, 0.05-0.1 percentof emulsifier and the balance of water, uniformly mixing, homogenizing, filling and sterilizing to obtain a finished product. The jellyfish and water chestnut drink has unique flavor, rich nutrition,good taste, rapid nutritive absorption and health efficacy of eliminating phlegm, lowering blood pressure and the like. The preparation method has reasonable process and strong operability, and is suitable for industrial production.