The invention discloses spicy non-slag hotpot oil with sauce aroma and a preparation method thereof and belongs to the field of hotpot condiments. The spicy non-slag hotpot oil with the sauce aroma comprises the following raw materials: soybean oil, palm oil, beef tallow, rapeseed oil, allium fistulosum, ginger, onion, sheep's-parsley, garlic, rock candy, fennel, cinnamon, anise, cumin, clove, black pepper, radix angelicae, Chinese prickly ash, pickled ginger, two-briers pepper, a new generation of pepper, Indian pepper, a broad-bean sauce, fermented soybeans, nutmeg, neolitsea ellipsoides allen, amomum tsao-ko, salt, white granulated sugar, aginomoto, a chicken essence, concentrated pork bone soup and Chinese white spirit. The prepared hotpot oil has a thick fragrance and a sauce aroma, and is spicy, and soft and mellow in taste.