The invention provides a silver conductive adhesive, comprising a basic resin, a curing agent, a curing accelerator, a conductive material and a solvent, wherein the basic resin is an epoxy resin including a bisphenol A epoxy resin and a gamma-butyrolactone modified epoxy resin, the curing agent is binary aliphatic ether amine and versamid, the curing accelerator is 2,4,6-tri-(dimethylaminomethyl)-phenol, and the conductive material is silver powder. The invention further provides a preparation method of the silver conductive adhesive. In the invention, the gamma-butyrolactone modified epoxy resin is introduced into the epoxy system silver conductive adhesive, and when the modified epoxy resin is cured, a polycyclic structure is subjected to ring-opening polymerization to result in volumetric expansion, by jointly applying the modified epoxy resin and the epoxy resin to the silver conductive adhesive, the prepared silver conductive adhesive has low shrinkage rate and low expansion rate as well as low volume resistance. The silver conductive adhesive prepared in the invention can be widely applied to various environments.