The invention relates to a soil improvement slow-release compound fertilizer and a preparation method thereof. The compound fertilizer is prepared from the following raw materials by weight: 30-40 parts of zeolite, 10-15 parts of corn cob, 10-15 parts of wheat straw, 5-10 parts of animal dung, 5-8 parts of plant ash, 9-11 parts of oyster powder, 10-13 parts of seaweed meal, 3-5 parts of humic acid, 7-10 parts of urea, 8-10 parts of alginate, 3-5 parts of potassium sulfate, 3-5 parts of ammonium dihydrogen phosphate, 3-5 parts of potassium phosphate, 3-5 parts of sodium silicate, 3-5 parts of calcium chloride, 3-5 parts of potassium nitrate, 1-2 parts of trace elements, 1-2 parts of vitamin, and 10-15 parts of amino acid powder. The soil improvement slow-release compound fertilizer provided by the invention has a simple making method, can improve soil, maintain soil water content, activate rapid propagation of soil microorganisms, and reduce soil saline-alkali harms, also can control slow release of the elements, and the coating material is biodegradable, thus protecting the environment.