The invention discloses a completely biodegradable film and a preparation method thereof. The completely biodegradable film is prepared from poly(butylene adipate-co-terephthalate), polyglycolic acid, a chain extender styrene-acrylic acid-glycidyl methacrylate copolymer, a plasticizer poly(succinic acid-1, 2, 4-trimethyl-1, 3-pentanedionate), a plasticizer poly (butylene adipate-co-butylene terephthalate), a plasticizer polysuccinic acid-1, 2-propylene glycol ester, a nucleating agent, a lubricant ethylene bisstearamide and an anti-blocking agent erucyl amide. The preparation method comprises the following steps: weighing the components according to the formula, mechanically mixing to form a premix, metering and adding the plasticizer polysuccinic acid-1, 2-propylene glycol ester from a liquid feeding port of a twin-screw extruder, carrying out melt extrusion, water cooling, pelletizing and drying to obtain special resin for film blowing, and carrying out blow molding film forming through a film blowing machine to obtain the completely biodegradable film. The chain extender, the nucleating agent and the plasticizer can effectively improve the tensile elongation at break and tear strength of the film and obviously improve the rheological behavior of the material, and the film has good mechanical properties and excellent biodegradability and can replace PE, PP, PVC and the like to prepare films and sheets.