The invention relates a speed reducer lubricating grease composition and a preparation method thereof. The composition comprises 69 to 80 percent of mineral base oil, 12 to 23 percent of ester base oil, 3.2 to 6 percent of thickening agent, 0.6 to 2 percent of dinonyl sulfonate or zinc naphthenate, and 1 to 2.8 percent of solid wear-resistance additive. The preparation method comprises: adding the mineral base oil into a reaction kettle, adding fatty acid, mixing, raising temperature to 80 to 85 DEG C, adding an aqueous solution of lithium hydroxide, heating to 90 to 100 DEG C, and performingsaponification for 1 to 2 hours; raising temperature to 210 DEG C, adding the mineral base oil into the reaction kettle, and quenching, wherein the quenching temperature is kept between 140 to 190 DEG C, and the quenching oil accounts for 14 to 43 percent of the total amount of the base oil; adding the ester base oil, and cooling; when the temperature is below 100 DEG C, adding the dinonyl sulfonate or zinc naphthenate, cooling to a temperature below 80 DEG C, and adding the solid wear-resistance additive; and cooling to a temperature below 60 DEG C, rolling oil by a three-roll machine for three times and filling to obtain finished speed reducer lubricating grease composition. In the invention, the lubricating grease is prepared by one-step direct reaction, the process and equipment are simple and energy-saving, and the quality of the product produced by the process is stable.