The invention provides a trench type field effect transistor structure and a preparation method thereof. The preparation method comprises the steps: providing a substrate of a first doping type, forming an epitaxial layer of the first doping type, forming a trench mask, forming a device trench, forming a gate oxide layer, forming a first conductive layer, forming a body region of a second doping type, forming a source injection region, forming a source electrode of the first doping type based on the trench mask, forming an insulating dielectric layer, enabling the upper surface of the insulating dielectric layer, the upper surface of the gate oxide layer, the upper surface of the source electrode and the upper surface of the body region to be flush, and forming a source electrode. According to the invention, the advantages of a self-alignment process are retained, cell density is effectively increased, a transistor structure and process are improved, the effective electrical extractionof the source electrode and the body region is realized, the key size of a cell is reduced, the electrical extraction mode of the source electrode and the body region is changed while the cell density is improved, the EAS capability of a device is improved, the doping uniformity of the body region is improved, and an extra body region leading-out region does not need to be prepared.