The invention discloses sterilization soil-improvement slow-release composite fertilizer. The sterilization soil-improvement slow-release composite fertilizer comprises, by weight, 20-25 parts of urea, 10-15 parts of ammonium biphosphate, 10-20 parts of potassium phosphate, 5-10 parts of potassium sulfate, 8-12 parts of sodium silicate, 4-6 parts of magnesium phosphate, 7-9 parts of calcium chloride, 0.2-0.4 parts of zinc ammonium phosphate, 0.1-0.3 parts of copper carbonate, 0.1-0.2 parts of manganese ammonium phosphate, 0.4-0.6 parts of potassium borate, 0.3-0.5 parts of ferric sulfate, 0.2-0.4 parts of sodium molybdate, 20-25 parts of sodium alginate, 35-45 parts of a coating material, 5-10 parts of cassava slag, 5-8 parts of furfural slag, 10-20 parts of chicken manure, 5-10 parts of carbonized rice husk, 10-15 parts of humic acid, 10-15 parts of straws, 5-8 parts of plant ash, 0.2-0.5 parts of biological fungi, 4-6 parts of thermopsine and 3-5 parts of Artemisia argyi powder. The invention also discloses a preparation method of the sterilization soil-improvement slow-release composite fertilizer.