The present invention discloses a low-cost high-strength anti-fatigue nonflammable wrought magnesium alloy and a preparation method thereof. The magnesium alloy comprises the following chemical components in percentage by mass: 2.0-6.0% of Al, 1.5-4.0% of Ca, 0.2-0.8% of Mn, 0.1-0.8% of rare earth (RE), and the balance Mg and trace inevitable impurities, wherein the RE is one or more of cheap rare earth elements of La, Pr, Ce and Nd, and the content of the cheap rare earth is not zero simultaneously. The magnesium alloy provided by the present invention will meet the urgent need of users for high-performance materials, and the application of the magnesium alloy to magnesium alloy products, for example, load-bearing structural parts of aerospace, vehicles, rail trains and so on, structural parts of medical treatment, welfare and outdoor sport equipment, and parts (e.g., compressor scroll pans) having certain requirements for heat resistance and fatigue performance, is expanded.