The invention discloses sea sedge-peanut sauce and a preparation method thereof. The sea sedge-peanut sauce is prepared from the following materials in parts by weight: 20-30 parts of sea sedges, 10-20 parts of cucumbers, 10-15 parts of white hyacinth beans, 25-40 parts of peanut kernels, 15-25 parts of mulberries, 10-15 parts of jujubes, 4-8 parts of brown sugar, 3-6 parts of white gourd seed powder, 4-8 parts of spiral seaweed powder, 10-20 parts of chicken soup, 8-12 parts of concentrated milk, 2-3 parts of selfheal, 2-3 parts of liquorice, 1-2 parts of folium microcotis, 1-2 parts of glossy privet fruits, 2-3 parts of polygonatum kingianum, 1-2 parts of madake bamboo roots, 2-3 parts of horseradish, 2-6 parts of salts, 2-5 parts of light soy sauce, 1-3 parts of monosodium glutamate, 10-15 parts of peanut oil and a proper amount of water. The sea sedge-peanut sauce disclosed by the invention is fresh and sweet, fine and pure in mouthfeel, added with the sea sedges, and fruits and vegetables, so that nutrition is balanced and rich; the sea sedge-peanut sauce is co-acted with traditional Chinese medicines with effects of invigorating the spleen and tonifying kidney, clearing away internal heat and improving eyesight, tonifying and protecting liver, and the like, is suitable for people of all ages to quench thirst and eat, and can promote development, can protect eyesight, can delay ageing, and can increase healthcare value while providing delicious food going with rice or bread.