The invention provides composite lithium grease and a preparation method thereof. The composite lithium grease comprises the following components by weight percent: 4-10 percent of hydroxyl fatty acid of C12-C14, 1-4 percent of dibasic acid of C4-C18, 1-4 percent of lithium hydroxide, 0.1-1 percent of organic amine antioxidant, 0.3-1 percent of anti-corrosion rust inhibitor, 1-5 percent of antiwear extreme pressure additive and the balance of base oil. The preparation method comprises the following steps of mixing the base oil with the hydroxyl fatty acid of C12-C14and the dibasic acid of C40C18, heating the mixture to 80-115 DEG C, and adding lithium hydroxide monohydrate aqueous solution to perform saponification reaction, then carrying out dehydration, raising the temperature to 130-180 DEG C to carry out constant-temperature refining, raising the temperature to 200-220 DEG C to carry out highest temperature refining, adding the residual base oil and the additives, cooling and grinding to obtain the composite lithium grease. The composite lithium grease has the advantages of high dropping point, favorable high temperature performance, mechanical stability, antiwear and extreme pressure property, corrosion and rust resistance, and the like.