The invention relates to a full-degradation deworming mulching film and a preparation method thereof. The full-degradation deworming mulching film comprises as follows in parts by mass: PBAT 30-60%, polylactic acid 10-30%, starch 10-30%, plasticizer 5-10%, chain extender 0-2%, filler 5-10%, plant source pesticide-sustained-release microcapsule 5-20% and full-degradation color master batch 0-5%. The preparation method comprises the steps of firstly absorbing plant source pesticide on diatomaceous earth, then processing with polyvinyl alcohol according to specific technology to obtain the plant source pesticide-sustained-release microcapsule, and then manufacturing materials for the full-degradation deworming mulching film with the PBAT, starch, polylactic acid, plasticizer, chain extender and the filler according to a specific production technology. The biological full-degradation mulching film has deworming effect, has important significance on crop pesticide residue reduction and environment protection, and meets the requirement of sustainable development.