The invention belongs to the technical field of food processing, and discloses a cigarette-substituting chewing sugar and preparation method thereof. The cigarette-substituting chewing sugar is composed of the following components in part by weight: 20-35 parts of gum base, 8-15 parts of Chinese herbal compound extract/beta-cyclodextrin inclusion compound, 30-60 parts of a sweetening agent, 0.3-0.5 part of tobacco flavor, 0.5-2.0 parts of a softening agent and 0.1-0.2 part of a flavor agent. The Chinese herbal compound extract/beta-cyclodextrin inclusion compound is formed by using ginseng leaf, savia miltiorrhiza, astragali radix, radix scrophulariae, radix ophiopogonis, mint leaves, cortex moutan and tobacco leaves as raw materials, extracting the raw materials and then carrying out microencapsulation. According to the cigarette-substituting chewing sugar, health and treating disease, clearing and nourishing throat and treating periodontitis in adjuvant can be achieved, and the influence of the harmful substance of the cigarette to a human body is alleviated, and a smoker can enjoy the enjoyment similar to the cigarette smell, the tobacco addiction of the ex-smoker can be alleviated and the smoker cannot suffer great pain.