The invention discloses a Xinhui dried tangerine peel sausage and a preparation method thereof. The Xinhui dried tangerine peel sausage comprises the following raw materials: lean meat particles, fatmeat particles, dried tangerine peel, soybean oil, raw ginger, lentinus edodes, shallot, garlic, refined salt , white sugar, soy sauce, wine, honey, five-spice powder, cumin powder, Chinese prickly ash powder, pepper powder, chili powder, agastache rugosus and star anise powder. According to the invention, the sausage is added with the dried tangerine peel which has the efficacy of relieving cough, stopping vomiting, invigorating the stomach, promoting diuresis, treating gastrectasia, diarrhea and anorexia, eliminating dampness, reducing phlegm and smoothing qi flow, so that the sausage has adelicate sweet taste and rich nutrients, and the obtained sausage is not fat and not greasy, loose in meat quality, good in taste, long in storage time, high in health degree, high in straightness, good in appearance and easy to digest. In the manufacturing process, the method improves baking process, turns original baking over open fire into present steam baking, realizes that no cancerogen of benzopyrene appears, guarantees the food safety of the sausage, and effectively controls quality.