The invention provides a preparation method of multifunctional health-care fancy yarn with antibacterial and skin-care functions. The yarn is composed of two pieces of core yarn, one piece of decorative yarn and two pieces of fixed yarn, wherein the core yarn is blended yarn formed by blending and processing calotropis gigantea fibers, mulberry bark fibers, Amicor antibacterial fibers and copper fibers, the fixed yarn is composed of far-infrared polyester filaments and tourmaline fiber filaments, and the decorative yarn is blended rough yarn formed by blending and processing tea leaf fibers, banana stem fibers, antibacterial odor-resistant acrylic fibers and rabbit hair fibers; or the core yarn is blended yarn formed by blending and processing sarcandra glabra fibers, luminous fibers, pineapple leaf fibers and silver fibers, the fixed yarn is negative ion polypropylene filaments, and the decorative yarn is blended rough yarn formed by blending and processing lotus fibers, anti-ultraviolet polyester fibers, double-resistant acrylic fibers, yak wool fibers and alpaca fibers. The yarn developed through the method does not generate adverse effects when making contact with the human body, products are not easy to damage by worms or rot, and the yarn is mainly used for various textiles such as yarn-dyed cotton suiting for women, roved and spun fabrics, decorative articles, hand knitted products and shawls.