The invention discloses an allopurinol impurity C and its preparation method, which belongs to the field of compound synthesis. The key point of the technical scheme is that S1: 3-aminopyrazole-4-formamide hemisulfate is dissolved in formamide, and 80wt% Hydrazine hydrate and 98wt% concentrated sulfuric acid are heated up to react; S2: After the reaction of S1 is completed, cool to room temperature, add sodium hydroxide solution to adjust the pH value of the solution to alkaline, add water and ethyl acetate, extract and separate the liquid, and collect the water phase; S3: Add n-butanol to the water phase in S2, extract and separate the liquids, collect the n-butanol phase, concentrate the n-butanol phase until solids are precipitated, filter with suction, and dry to obtain the product. The invention has mild reaction conditions, is easy to operate, has high product purity, can replace the official reference substance, and the obtained product has great significance for the quality research of allopurinol.