A method for preparing potassium nitrate and ammonium chloride employing double decomposition reaction comprises the following steps: dissolving ammonium nitrate and potassium chloride in water according to a defined ratio at 110 DEG C, continuously adding potassium chloride and water, heating while stirring to ensure that potassium nitrate is in supersaturation state, after stopping heating, cooling the solution in a vacuum cooling crystallizer to 36-40 DEG C to separate potassium nitrate crystal, placing the potassium nitrate crystal in a centrifugal machine with a filter cloth lining to obtain coarse potassium nitrate, then washing the potassium nitrate with cold water, drying to obtain the finished potassium nitrate; in addition, adding ammonium nitrate in mother solution I and cleaning solution to adjust solution concentration so that ammonium chloride can reach supersaturation state, using a vacuum concentration device to perform negative pressure evaporation, separating and precipitating ammonium chloride by centrifuging and obtaining a solid ammonium chloride product, wherein, when dissolving ammonium nitrate and potassium chloride, the ratio of ammonium ion to chlorine ion is 1:2 and when using the centrifugal machine to obtain the coarse potassium nitrate, the separated mother solution is another mother solution I sharing the same saturation point of potassium nitrate and ammonium chloride. The solution of feed liquid circular reaction overcomes the defects of the prior art that the price of potassium nitrate used in reaction is high, the resource of potassium nitrate is in short supply and the cost of devices used in ion-exchange method is high, thus being applicable to the production of potassium nitrate.