The invention provides Ce:YAG microcrystalline glass capable of achieving yellow luminescence under the condition of blue light excitation and a preparation method of the Ce:YAG microcrystalline glass, and Ce:YAG fluorescence microcrystals are inlaid uniformly in an oxide glass matrix of the microcrystalline glass. The microcrystalline glass comprises glass components in percentage by mole as follows: 0-10 mol% of SiO2, 0-40 mol% of GeO2, 20-60 mol% of TeO2, 0-25 mol% of B2O3, 0-15 mol% of P2O5, 0-10 mol% of Al2O3, 0-20 mol% of Ae2O, 0-20 mol% of ZnO, 0-15 mol% of BaO, 0-20 mol% of Sb2O3, 0-20 mol% of La2O3 and 0-10 mol% of Bi2O3, wherein Ae is selected from Li, Na or K; and the content of Ce:YAG microcrystals is 1-15 wt% of the oxide glass matrix. The invention further provides a preparation method for the microcrystalline glass. The microcrystalline glass provided by the invention can emit yellow light under the excitation of blue light, the yellow light and the blue light are combined to generate intense white light, and accordingly, the microcrystalline glass and the method can be used for development and application of construction of the white light LED which is excited by a blue light chip.