The invention relates to multifunctional grinding dust granules for a car brake pad and a preparation method thereof. The method includes the following steps that 40-50 parts of grinding dust, 10-15 parts of NACF fibers, 10-15 parts of calcium carbonate whiskers, 10-15 parts of diatomaceous earth, 10-15 parts of cryolite, 15-20 parts of magnetite powder, 1-2 parts of antimony sulfide, 5-10 parts of barium sulfate, 3-5 parts of lithopone, 3-5 parts of crystalline flake graphite, 20-25 parts of potassium hexatitanate whiskers, 8-15 parts of F826 adhesives, 20-36 parts of spherical white vermiculite, 4-6 parts of nitrile butadiene rubber powder, 25-30 parts of aluminium silicate hollow spheres, 15-20 parts of sepiolite fibers, 8-15 parts of expanded graphite, 5-8 parts of tyre powder, 25-30 parts of carbon fibers and 15-20 parts of porous iron powder are mixed evenly, put into smelting equipment to be smelted and plastified, and smashed into the granules with the grain size being 8-20 meshes, so that the multifunctional grinding dust granules are obtained. The multifunctional grinding dust granules and the preparation method thereof have the advantages that the grinding dust can be recycled, the heat fading performance of a friction plate is improved, the working noise of the friction plate is low, the heat conductivity of the friction plate is good, the abrasion resistance of the friction plate is enhanced, and the service life of the brake pad is prolonged.