The invention discloses a moisture-absorption, heat-generating, quick-drying, moisturizing and thermal fabric and a preparation method thereof. The fabric is formed by weaving first yarns, second yarns, third yarns and fourth yarns, wherein the first yarns are regenerated cellulose fiber type blended yarns formed by blending linen, wool or cashmere, one or more types of cotton fibers and regenerated cellulose fibers, or regenerated cellulose multi-filaments, or regenerated cellulose staple fiber yarns; the second yarns are modified polyester fiber yarns with non-circular cross sections; the third yarns are cotton fiber type blended yarns formed by blending one or two of polyester staple fiber yarns or polyacrylonitrile fibers and cotton fibers, or all cotton yarns; the fourth yarns are polyurethane fiber yarns. The moisture absorption and heat-generating value of the fabric exceeds national standards, the moisture absorption and quick-drying performance is excellent, and the thermal insulation rate meets national standards; the fabric also has comfortable elasticity and soft and smooth hand feeling of one surface next to the skin. Meanwhile, the preparation method is simple in process, and convenient to operate.