The invention discloses a spicy green pepper sauce and a preparation method thereof, and belongs to the technical field of chili sauce production and processing. The preparation method comprises the following raw materials in parts by weight: 56-80 parts of dried chilies, 3-5 parts of pickled chilies, 2-4 parts of pickled gingers, 2-4 parts of pickled capsicum frutescens, 9-11 parts of garlic, 15-23 parts of Chinese prickly ash, 56-68 parts of vegetable oil, 5-8 parts of thick broad-bean sauce, 3-5 parts of chicken essence seasoning, 2-4 parts of monosodium glutamate, 1-3 parts of cooking wine, 1-3 parts of soy sauce, 3-5 parts of spices, 2-4 parts of sesame seeds, 4-6 parts of white granulated sugar, 1-3 parts of salt and 0.5-1.5 parts of food additives. The spicy green pepper sauce and the preparation method thereof provided by the invention have the advantages that the ratio is reasonable, the taste is mellow, the color, fragrance and taste are good, the seasoning requirements of mixing noodles, mixing rice, dipping sauce, cooking dishes and steaming fish in daily diet of people loving to eat spicy peppers can be met, the application range is wide, and thus the applicable crowd is expanded.