The invention discloses an organic fertilizer which is composed of fresh tree branches, animal manure, human excrements, yoghourt, calcium hydroxide, grain stillage, mixed peels, mixed strains, a biological leavening agent and a soil conditioner, wherein the animal manure is composed of duck manure, chicken manure and cattle manure; the mixed peels comprise air-dried banana peels, air-dried apple peels, air-dried pear peels and air-dried orange peels; the mixed strains comprise saccharomycetes, actinomyces and nitrifying bacteria. The invention further discloses a preparation method of the organic fertilizer. According to the invention, organic wastes such as the animal manure, the grain stillage, the mixed peels and the like are fully used, resources are reasonably used, the cost is lowered, ecologic protection is facilitated, the organic fertilizer provided by the invention is treated through repeatedly decomposition, is rich in various trace elements and organic matters, can well improve agricultural product quality and can improve soil structure.