The invention relates to a fertilizer granulation additive and a preparation method thereof. The fertilizer granulation additive is prepared from, in percentage by weight, 3%-5% of quicklime powder, 3%-5% of alcohol waste liquid dry powder, 0.2%-0.5% of a surfactant, 0.5%-1% of modified waste manganese slag and the balance of modified bentonite. The prepared fertilizer granulation additive has high adsorption activity and binding power and contains rich fertilizer effect ingredients. The fertilizer granulation additive is added in the fertilizer granulation process, the fertilizer caking property can be greatly increased, the granulation and balling rate is increased, the granulation speed and the yield of a fertilizer are increased, the granule strength is increased, the water content of the fertilizer can further be reduced, fertilizer caking is prevented, the fertilizer keeps good looseness, and transportation, storage and use of the fertilizer are facilitated. The fertilizer granulation additive is used for granulation of the fertilizer, nutrients of the prepared granule fertilizer can be increased, the synergism effect of the fertilizer is remarkable, the nutrients in the fertilizer can be slowly released, fertilizer waste is reduced, the utilization efficiency of the fertilizer is improved, and the function of improving the soil environment can be realized.