The invention discloses a preparation method of fine indium sulfide powder and a target material, and the preparation method of the fine indium sulfide powder comprises the following steps: introducing H2S gas into an In2 (SO4) 3 solution, reacting under stirring to synthesize indium sulfide, and after the reaction is finished, rinsing, filtering, calcining, ball-milling and sieving the synthesized product to obtain indium sulfide powder with the particle size D90 of 20-40 [mu] m; and allowing the indium sulfide powder to be subjected to airflow crushing, wherein the feeding pressure and crushing pressure of airflow crushing are 8-12 kg, the feeding speed is 3-5 kg / h, and continuing ventilation for 3-5 min after feeding is finished to obtain the fine indium sulfide powder with D90 smaller than 5 micrometers. The prepared indium sulfide powder is beta-In2S3 of a tetragonal structure, the particle size D90 is smaller than 5 microns, the indium sulfide powder is used for preparing the target material, the quality of the target material is improved, the average grain size of the target material is smaller than 5 microns, the resistivity is smaller than 0.5 K omega / cm, the relative density is larger than or equal to 97%, the impurity content is low, and a film formed through sputtering is good in stability, uniform in thickness distribution and consistent in grain size.