The invention provides a biomass pellet fuel and a preparation method thereof. The biomass pellet fuel comprises the following components, by weight: herbivorous animal manure, agricultural waste, illegal cooking oil, calcium oxide, calcium sulfate, propionic acid, kaolin, diatomaceous earth, bentonite, calcium peroxide, aluminum hydroxide, propylene glycol, polyvinyl alcohol, an oxygenate, an antiknock agent, a combustion improver, and a bulking agent. The biomass pellet fuel has low water content and high lignin content. According to the invention, a large amount of agricultural waste and animal manure are utilized. Air pollution caused by the activities of burning agricultural waste is greatly reduced, and animal manure can be effectively treated, such that recycling application value is improved, and the fuel is more environment-friendly. Compared to conventional biomass pellet fuels, the biomass pellet fuel provided by the invention has the advantages of high combustion value, long combustion time, no harmful gas emission after combustion, and no corrosion to combustion equipment.