The invention relates to a preparation method of natural fiber compounded magnetic hydrogel, and belongs to the technical field of hydrogel preparation. Soaking by a sodium hydroxide solution is used for weakening the bonding force among fibers; then, steam blasting treatment is used, so that straw fibers are decomposed into monomer fibers and fiber bundles; then, liquid nitrogen is used for fast cooling, so that the fibers subjected to blasting decomposition are frozen; through ball milling treatment, the fibers are broken into nano-scale fibers; then, a polyhydroxyl characteristic of the surfaces of the nano-scale fibers is used; chemical bonds and physical adsorption are formed with magnetized nanometer ferroferric oxide crystals; through ultrasonic dispersion and freezing treatment, the natural fiber compounded magnetic hydrogel in uniform distribution is obtained. The natural fiber compounded magnetic hydrogel prepared by the method has the advantages that the magnetic intensity is high, and can reach 46.6 to 47.8 emu/g; the stretching intensity is good, and can reach 630 to 720kPa.