The invention relates to a bonding copper wire and a preparation method thereof. The bonding copper wire comprises the following components in percentage by mass: 0.0003 percent to 0.003 percent of lithium, 0.0002 percent to 0.002 percent of calcium, 0.0002 percent to 0.001 percent of aluminium, 0.0005 percent to 0.005 percent of cerium and/or yttrium, 0.0001 percent to 0.001 percent of other inevitable impurity elements and the balance of copper. The preparation method of the bonding copper wire comprises the following steps of: preparing a middle alloy, preparing an alloy cast ingot, annealing uniformly, heat extrusion, stress relief annealing, drawing, final annealing, winding for multiple coils, packaging, and final protective packaging, wherein in a drawing process, middle stress relief annealing can be performed according to practical needs. The bonding copper wire has better inoxidizability while keeping better conduction and radiation properties; in the preparation process of the bonding copper wire, the uniform annealing is added and the middle stress relief annealing is performed, so that the mechanical property of the prepared bonding copper wire is better.