The invention discloses a biological insecticidal organic fertilizer and a preparation method thereof, and belongs to the technical field of fertilizer preparation. The biological insecticidal organic fertilizer comprises, by weight, sabadilla, Derris fordii Oliv., Cortex Magnoliae Officinalis, aloe, capsicum, maple tree leaves, Cortex Fraxini, amargosa bark, waste residues, Pomacea canaliculata powder, biological bacteria, boron salt, iron salt, zinc salt, manganese salt, copper salt, a water retaining agent, a conditioning agent and a dispersant. The biological insecticidal organic fertilizer is prepared through the steps of crushing, extracting, filtering, concentrating, fermenting, granulating, drying, and cooling. The fertilizer can effectively prevent diseases and pesticides, can balance nutrition, promotes fast and healthy growth of crops, shortens the growth cycle, improves the output of the crops, reduces the production cost, improves soil environment, and maintains ecology and environmental protection.