The invention belongs to the technical field of distiller's yeast, and specifically discloses a sandalwood-type distiller's yeast and a preparation method thereof. The sandalwood-type distiller's yeast of the present invention is mainly made of 60-70 parts of basic grains and 30-40 parts of Chinese herbal medicine components through pulverization, mixed fermentation and drying; wherein, the Chinese herbal medicine components mainly include the following raw material components in parts by weight: 5‑10 parts of cinnamon sticks, 5‑10 parts of orange peel, 4‑8 parts of red dates, 3‑7 parts of white eyebrows, 3‑6 parts of saponins, 3‑6 parts of cloves, 3‑6 parts of angelica, 2‑6 parts of wild chrysanthemum 2-6 parts of chamomile, 2-5 parts of Niu Dali, 2-5 parts of gardenia, 2-5 parts of pepper and 1-5 parts of licorice. The preparation method of the sandalwood-type distiller's koji is simple and easy to operate, and the quality of the prepared sandalwood-type distiller's koji is stable and safe, and can effectively improve the sensory acceptance of liquor.