The invention discloses a high-performance fiberboard based on recycling of waste cotton textiles and a preparation method thereof. The preparation method comprises the steps of cutting waste cotton cloth into broken pieces of cloth first, soaking in water, uniformly mixing the broken pieces of cloth, water, sodium hydroxide and hydrogen peroxide, and then continuously cooking; cleaning with water, grinding into thick liquid by using a disc mill, drying, and then performing secondary crushing, so that cotton fiber is obtained; uniformly mixing polyisocyanate and the cotton fiber, so that sized cotton fiber is obtained; laying the sized cotton fiber, and then pre-pressing and forming, so that a pre-pressed board is obtained; and then heating to 100 to 200 DEG C, hot-pressing, and then cooling, so that the high-performance fiberboard is obtained. The fiberboard has the advantages of excellent physical and mechanical properties, low water absorption, environmental friendliness, simplicity and easiness in implementation and is suitable for industrial production, secondary high-value application of the waste cotton textiles is realized, and the preparation process has no special requirements on equipment and can be realized by existing processing equipment.