The invention relates to the technical field of cultivation of edible mushrooms and discloses hericium erinaceus compost and a preparation method thereof. The hericium erinaceus compost includes following raw materials, by weight, 30-35% of straw, 30-35% of peanut shell powder, 10-15% of soybean powder, 6-12% of cake fertilizer, 6-12% of sugar, 1-2% of gypsum powder and 1-2% of calcium superphosphate. In the hericium erinaceus compost, the straw and the peanut shell powder are employed as main raw materials, wherein the straw is rich in nitrogen, phosphorus, potassium, calcium, magnesium, organic substances and the like. The straw is a multi-functional recyclable biological resource, is high in the content of straw crude fibers and contains lignin. The peanut shell powder is high in crude fibers. The raw materials of the hericium erinaceus compost are easy to obtain. The hericium erinaceus compost is low in cost and is easy to prepare. Hericium erinaceus grown on the compost is short in growth time and fruiting time, is high in yield of damp mushrooms, is short in producing period, is good in quality, is delicious in taste, is rich in nutrition and is significant in medicinal effects.