The invention relates to the technical field of medical articles, in particular to alginate medical dressing and a preparation method thereof. The medical dressing is prepared by soaking alginate fibers in a functional soaking solution, wherein the functional soaking solution is prepared from, by weight, 2-4% of carboxymethyl chitosan, 1-2% of oligochitosan, 3-6% of chitosan hydrochloride, 1-2% of hyaluronic acid chitosan, 0.03-0.05% of antibacterial agent, 0.5-5% of sodium carboxymethyl cellulose, 1-6 % of calcium chloride, 0.005-0.05% of epidermal growth factor, 0.02-0.05% of aloe extracts and the balance water. The chitosan substances, the antibacterial agent, carboxymethyl cellulose, calcium chloride, the epidermal growth factor and the aloe extracts are loaded in the alginate fibers, so that the medical dress is endowed with the remarkable effects of preventing bacteria, stopping bleeding, promoting healing, preventing wound adherence and preventing scars.