The invention discloses an iron-containing organic metallurgical pellet binder and a preparation method thereof. The iron-containing organic metallurgical pellet binder comprises the following components in percentage by weight: 1-3% of polyacrylamide, 30-40% of sodium humate, 6-10% of borax, 8-15% of sodium nitrate, and 30-60% of iron ore powder, wherein the components are mixed, dried, grinded and then prepared into the finished product. The iron-containing organic metallurgical pellet binder disclosed by the invention is a pure organic matter binder, and has the characteristics of efficient binding force, low proportion, high burning loss and low residue; and by using the iron-containing organic metallurgical pellet binder disclosed by the invention for replacing common bentonite, the iron grade of pellet ores can be effectively increased, and the replacement is of great significance to realization of production increasing and coke saving of a blast furnace, energy conservation and emission reduction, reasonable utilization of iron ore resources, and improvement of overall economic benefits and social benefits of iron and steel enterprises.