The invention discloses an improved type porous granular ammonium nitrate fuel oil explosive and a preparing method thereof. The improved type porous granular ammonium nitrate fuel oil explosive is prepared by mixing the following three raw materials in percentage by weight: 93%-95% of porous granular ammonium nitrate, 2.5%-5.0% of light diesel oil and 1.5%-4.0% of bamboo charcoal powder. The preparing method comprises the following steps of adding the porous granular ammonium nitrate to a dispersator according to quantity, then slowly adding sufficient light diesel oil, sufficiently stirring for 5 minutes, and then stopping stirring; standing for 5 minutes, starting the dispersator again, slowly adding the residual bamboo charcoal powder, continuously stirring till color and luster are uniform, wherein the black bamboo charcoal powder is uniformly absorbed on the surface of the porous granular ammonium nitrate; finally filling and sealing to obtain the finished improved type porous granular ammonium nitrate fuel oil explosive product which has the advantages of uniform stirring, excellent property, low moisture absorption and agglomeration ratio, stability in storage, safety, environmental protection, energy conservation, low consumption and low cost.