The invention discloses a soil improvement type biological organic composite coated fertilizer which is characterized by being prepared from the following raw materials in parts by weight: 67-70 parts of human and animal excreta, 25-30 parts of riverway sludge, 8-10 parts of diatomite, 25-28 parts of diammonium phosphate, 12-15 parts of magnesium sulfate, 15-19 parts of potassium chloride, 45-49 parts of furfural residue, 40-45 parts of animal bone meal, 50-54 parts of rice husk, 35-40 parts of saw dust, 27-29 parts of urea, 3-5 parts of amino acids, 1-2 parts of sodium tetraborate, 7-8 parts of an EM fungicide, 7-9 parts of a soil improvement agent and a proper amount of water. The fertilizer disclosed by the invention is balanced in nutrition, contains inorganic elements and mineral substance components such as the riverway sludge and diatomite, the nutrient needed by plant growth is met, the soil is activated, and the water and fertilizer retaining properties of the soil are improved; and due to the addition of the soil improvement agent, the fertilizer has the effects of improving the efficiency and promoting plant nutrition absorption. According to the fertilizer disclosed by the invention, the urea melting and coating process is adopted, the slow-release effect is obvious, and the fertilizer efficiency is lasting.