The invention discloses a rare earth iron-doped transparent oxygen fluorine germanate microcrystalline glass and a preparation method thereof. The transparent microcrystalline glass comprises the following components by mole percentage: 38-60 percent of GeO2, 4-26 percent of Al2O3, 0-8 percent of Ga2O3, 15-40 percent of CaF2, 0-12 percent of MF, 0-6 percent of ErF3, 0-8 percent of YbF3 and 0-4 percent of PrF3, wherein M is one or more of Li+, Na+ and K+. The preparation method comprises the steps of pouring by melting method to obtain matrix glass and carrying out special thermal treatment on the matrix glass to obtain the microcrystalline glass containing CaF2 crystalline phase in nanometer level. The transparent oxygen fluorine germinate microcrystalline glass is environment-friendly, has stable physicochemical property and does not contain toxic Pb element, and has high transparency from visible area to near-infrared and intermediate infrared areas and excellent active optics property. The invention can be used in the field of optical communication, display, storage, and the like.