The invention discloses a high-performance bonded rare earth magnetostrictive material and a preparation method thereof. The high-performance bonded rare earth magnetostrictive material comprises the following raw materials, in parts by weight:3-5 parts of metal terbium, 5-10 parts of metal dysprosium, 15-20 parts of metal iron, 10-15 parts of binders, 30-40 parts of acetone solution, 10-15 parts of curing agents and 10-15 parts of coupling agents. The method is characterized by blending the metal terbium, the metal dysprosium and the metal iron according to a ratio of 3:7:19 in molar mass, and placing the mixture in a vacuum non-consumable arc furnace for argon-filling melting to obtain an alloy ingot; then, under the protection of gasoline, smashing the alloy ingot through an ingot disc to obtain powder particles having required particle sizes; then, mixing the obtained powder particles with the binders, then, placing the mixture into the acetone solution, stirring the solution and meanwhile, heating the solution with an infrared lamp until the materials are uniformly blended and acetone is volatilized completely; after cooling, adding the curing agents, and after carrying out full stirring and uniform blending, keeping the obtained mixture in a certain intensity of magnetic field for a period of time; and then, carrying out compression moulding through a hydraulic press, and finally, carrying out curing processing. The tensile strength of the obtained material is enhanced, and the production cost is low.