The invention firstly provides a quasicrystal complex phase hydrogen storage alloy containing magnesium, titanium, vanadium and nickel and a preparation method thereof, belonging to the field of hydrogen storage materials. The expression formula of the hydrogen storage alloy is Ti1.4V0.6Ni+x% by weight of Mg, wherein x is more than 1 and less than 5. The invention further provides the preparation method of the quasicrystal complex phase hydrogen storage alloy containing the magnesium, the titanium, the vanadium and the nickel, and the method comprises the following steps: placing Ti, V and Ni metals into a vacuum electric arc furnace to smelt so as to form an alloy ingot, and preparing a Ti1.4V0.6Ni quasicrystal complex phase material thin strip containing an I phase through a vacuum sharp quenching and casting integrated machine; and then grinding, and placing magnesium powder into a ball milling tank for ball milling so as to get the hydrogen storage alloy, wherein the weight ratio of balls to material is (20-10): 1, and the ball milling time is 10-30min. Experimental results show that, after 50 cycles, the capacity decay rate of the quasicrystal complex phase hydrogen storage alloy containing the magnesium, the titanium, the vanadium and the nickel is far lower than the quasicrystal complex phase hydrogen storage alloy containing the titanium, the vanadium and the nickel.