The invention discloses a preparation method of flavored needle mushrooms with chopped chili peppers. The preparation method comprises the following steps of preparing medicinal distiller's yeast from Chinese herbal medicine raw materials of ranunculus sieboldii, wild chrysanthemum flowers, herbal hydrocotyle sibthorpiodes, licolrice, riparian homonoia roots and the like, and brewing rice wine with the medicinal distiller's yeast to obtain wine materials; washing fresh yellow tribute chili peppers through last distillate, draining the washed yellow tribute chili peppers, chopping the drained yellow tribute chili peppers, uniformly mixing the chopped yellow tribute chili peppers with table salt, and performing pickling; putting the wine materials repeatedly to the pickled yellow tribute chili peppers, and performing sealed fermentation to obtain chopped yellow tribute chili peppers; and blanching needle mushrooms, and uniformly mixing the blanched needle mushrooms with the prepared chopped yellow tribute chili peppers so as to obtain the needle mushrooms with chopped chili peppers, which are crisp and refreshing in mouth feel, good in color, rich in nutrition and unique in flavor. The flavored needle mushrooms with chopped chili peppers not only have the effects of clearing heat, removing toxicity, dispelling the wind, promoting urination, replenishing blood, promoting the function of gallbladder, promoting diuresis, stimulating the appetite, promoting digestion, removing food retention and the like, but also are long in quality guarantee period. When the chopped chili peppers are prepared, the respects of the alcohol by volume of the rice wine, the storage time, the addition manner, the treatment manner of the raw materials, the compounding ratio of the raw materials and the like are subjected to technological exploration for many years, and unique effects are obtained.