The invention provides high-strength magnesium-lithium alloy and a preparation method thereof. Commercial pure Mg, commercial pure Li, commercial pure Zn, Mg-RY middle alloy are taken as materials; the high-strength magnesium-lithium alloy is prepared from the materials by mass percent: 4.5-5.5% of Li, 2.0-3.8% of RY, 0.2-1.0% of Zn, less than 0.03% of gross of inevitable Fe, Cu, Ni and Si impurities, and the balance of Mg in a mixing manner according to the ratio. The preparation method comprises the steps of: based on commercial pure Mg, commercial pure Li, commercial pure Zn, Mg-RY middle alloy as materials, mixing the following components in percentage by mass: 4.5-5.5% of Li, 2.0-3.8% of RY, 0.2-1.0% of Zn, less than 0.03% of gross of inevitable Fe, Cu, Ni and Si impurities, and the balance of Mg; smelting in a vacuum induction smelting furnace, wherein the inside of the furnace is vacuumized before smelting, and then aerating argon is aerated to protect, the smelting process is carried out under protection of argon atmosphere, and the smelting temperature is 660-750 DEG C; casting the smelted melt into a metal die to obtain as-cast alloy; carrying out hot extrusion for at least twice to obtain the high-strength magnesium-lithium alloy. The obtained alloy disclosed by the invention has high strength and good plasticity; the tensile strength at room temperature is 220-260 MPa; the yield strength is 180-220MPa; the elongation percentage is 15-25%.