The invention relates to a degradable composite film and a preparation method thereof. The degradable composite film comprises, by weight, 35-45 parts of polylactic acid, 15-22 parts of polyvinyl alcohol, 18-25 parts of starch, 12-17 parts of corn stalk powder, 8-13 parts of chitosan, 14-20 parts of lignocelluloses, 7-13 parts of light calcium carbonate, 4-9 parts of diatomite, 7-12 parts of vermiculite powder, 3-8 parts of zinc oxide, 2-7 parts of epoxidized soybean oil and 0.5-3 parts of defoamers. The degradable composite film and the preparation method thereof have the advantages that the film is mainly prepared from the polylactic acid, and the starch, the corn stalk powder, the chitosan and the lignocelluloses are added compatibly, so that the film has high biological degradability and is safe and environment friendly, and white pollution is avoided; the zinc oxide, the diatomite and the vermiculite powder serve as activating agents, strength and tenacity of the film can be improved, and migration rate of plasticizers can be lowered; the raw materials are easy to get, the price is low, the preparation process is simple, and good economic benefit is achieved.