The invention discloses a cylindrical lithium ion battery used for a high-capacity electric tool and a preparation method thereof. The preparation method comprises the following steps: (1) stirring a conductive agent Super P, KS-6, a positive active material, a binder PVDF and NMP at a high speed, smearing the mixture on the front and back surfaces of an aluminum foil, drying, grinding, stripping, and flaking to obtain a positive plate; (2) stirring the conductive agent Super P, a negative active material, a binder and deionized water at a high speed, and finally, smearing the mixture on the front and back surfaces of the aluminum foil, drying, grinding, stripping and flaking to obtain a negative plate; (3) roasting the positive plate and the negative plate, winding, injecting electrolyte and sealing to obtain an assembly battery; and (4) forming. The cylindrical lithium ion battery for the high-capacity electric tool prepared by the method has the characteristics of excellent inner resistance, rate capability, rapid charging performance, high-current cycling performance and safety.