The invention discloses a modified full-bio-based PBAT biodegradable plastic and a preparation method thereo. The preparation method comprises the following preparation processes of (1) taking phytic acid, itaconic acid, epichlorohydrin, sodium hydroxide and feather meal to prepare a bio-based flame retardant, (2) taking cellulose acetate, lactic acid, wheat gluten protein and epoxidized soybean oil to obtain the bio-based polymer, and (3) melting and blending poly(butylene adipate-co-terephthalate), polylactic acid, the bio-based polymer and the bio-based flame retardant to obtain the bio-based degradable plastic. By adding the PLA, the bio-based flame retardant and the bio-based polymer into a PBAT system, fuzziness of a phase interface between the PLA and PBAT components can be promoted, the interface bonding effect between the two phases is enhanced, the compatibility is effectively improved, a blend is dispersed more uniformly, the comprehensive mechanical property of the system can be improved, and further improvement of the flame retardant property of the system is promoted.