The invention discloses a rare earth-containing aluminium alloy and a preparation method thereof, and belongs to the technical field of aluminium alloy preparation. The rare earth-containing aluminiumalloy is prepared from the following raw materials: titanium, zinc, iron, manganese, copper, carbon, chromium, boron, magnesium, molybdenum, tungsten, vanadium, rare earth elements, a refining agent,sodium pentafluorophenol, a grain refiner and aluminium; the rare earth-containing aluminium alloy is prepared by the steps of melting, refining, slagging-off, casting and the like. By adopting the process of the invention, the tensile strength, the ductility and the corrosion resistance of the aluminium alloy can be remarkably improved.