The invention relates to the field of automobile parts, in particular to anti-oxidation and anti-fatigue CREE rare earth heat-resistant steel for a turbocharger shell and a preparation method of the anti-oxidation and anti-fatigue CREE rare earth heat-resistant steel. The alloy comprises the following components in percentage by weight: 0.1 to 0.5 percent of C, 1.0 to 3.0 percent of Si, 5.0 to 10.0 percent of Mn, 15.0 to 25.0 percent of Cr, 1.0 to 6.0 percent of Ni, 0.05 to 0.50 percent of V, 0.05 to 0.50 percent of Nb, 0.2 to 0.7 percent of N, 0.005 to 0.5 percent of RE and the balance of Fe. According to the anti-oxidation and anti-fatigue CREE rare earth heat-resistant steel for the automobile turbocharger shell, by controlling the C/N atom proportion, a film-shaped second phase is formed at the grain boundary, intragranular oxidation is inhibited, and the high-temperature oxidation resistance is improved; by means of the inhibition effect of rare earth elements on second phase growth, the high-temperature structure stability is improved, and thus the thermal fatigue resistance is improved. The intermediate frequency furnace high-nitrogen alloying, high-purity rare earth treatment and sand casting technologies are adopted, a turbocharger shell casting which is uniform in component, compact in structure and excellent in performance is obtained, and the technical problems of high-temperature oxidation, fatigue cracking and the like of a furnace turbocharger can be effectively solved.