The invention discloses a modified graphene-reinforced aluminum matrix composite material and a preparation method thereof. The method includes the steps that graphene powder, silica powder, grinding balls and stearic acid are placed into a ball grinding mill, liquid nitrogen is filled in till all the grinding balls are immersed and then ball milling is performed, and mixed powder is obtained and dried; the dried mixed powder is sintered, so that modified graphene is obtained; the modified graphene, high-purity aluminum powder, grinding balls and stearic acid are put into the ball grinding mill, liquid nitrogen is filled in for ball milling, modified graphene-aluminum powder mixed powder is obtained, and drying is further performed; and the dried modified graphene-aluminum powder mixed powder is added into a molten aluminum or molten aluminum alloy solution to be evenly stirred, and casting is carried out. By the adoption of the method, graphene is modified, good wettability between the graphene and an aluminum matrix can be obtained, and the bonding strength of the graphene and the aluminum matrix is improved. By blending different molten aluminum or molten aluminum alloy solutions, graphene-reinforced aluminum matrix composite material billets of various specifications can be obtained by means of casting, and batch production is achieved.