The invention discloses a high-conductivity aluminum alloy wire and a preparation method thereof, relating to the technical field of wires, comprising the following elements in weight percent: 1.15-1.28% of Mg, 1.21-1.35% of Si, 0.33-0.42% of Zr, Y is 0.11-0.15%, Ce is 0.25-0.33%, La is 0.06-0.17%, B is 0.41-0.55%, Cu is 0.61-0.85%, other impurities are less than 0.3%, and the balance is Al; including dehumidification, Smelting, refining, slag removal, heat treatment, casting, rolling, wire drawing and heat treatment steps; the wire has very good electrical conductivity, and its elongation has also been very well improved, meeting the needs of the power industry.