The invention provides a conductive paste and a preparation method thereof. The conductive paste comprises aluminum powder, an inorganic binding agent, an organic carrier and metal-glass composite powder, wherein the metal-glass composite powder is of nano-particles and a core-shell structure, glass is used as a core material, and metal is used as a shell material. The conductive paste disclosed by the invention is good in storage stability and less prone to sedimentation and agglomeration, and the conductive paste is less prone to leakage from a screen during screen printing; after sintering, an aluminum film is smooth in surface and grey white, and has no aluminum vesicles or aluminum beads; and furthermore, the part in contact and superimposition with a back silver electrode, of the aluminum film is wiped by a non-dust cloth, and wiping traces and powder dropping can be avoided. The series resistance of the produced solar cell is reduced obviously, a filling factor is increased obviously, and the average photoelectric conversion efficiency of a monocrystalline silicon cell piece can be above 18.20%. Simultaneously, the conductive paste disclosed by the invention is good in construction performance, a film layer formed after sintering is compact, the sintering thickness is uniform, the bending of a silicon chip is small, the sheet resistance is small and the open circuit voltage (Voc) of the formed cell is high.