The invention relates to a medium strength aluminium alloy wire with conductivity of 55% IACS, and a preparation method thereof, and belongs to the field of alloy manufacturing technology. The alloy elements comprise, by weight, 0.16%-0.22% of iron, 0.48%-0.54% of silicon, 0.62%-0.67% of magnesium, 0.01%-0.02% of boron and 0.02%-0.05% of ytterbium, with the balance being aluminium. The medium strength aluminium alloy wire with a product conductivity higher than or equal to 55% IACS and tensile strength higher than or equal to 315 MPa is obtained by processes of selecting materials, smelting liquid aluminium, adjusting liquid aluminium ingredients, carrying out purifying treatment, deslagging, standing with heat preservation, degassing, filtering with heat preservation, casting and crystallizing, rolling an aluminum rod, drawing and aging. The wire and cable produced by using the aluminium alloy can be erected continuously by a conventional construction process. In a circuit operation process, circuit loss can be reduced; construction fee can be reduced; and enormous economic benefits and social benefits can be brought about for power transmission and transformation industries.