The invention provides an Al-Fe-Ba-RE aluminum alloy, and a preparation method of the Al-Fe-Ba-RE aluminum alloy. The method comprises the steps that: (a) an aluminum alloy ingot is cast; (b) the aluminum alloy ingot is subjected to a homogenization treatment; and the obtained aluminum alloy ingot is rolled, such that an aluminum alloy rod material is obtained; (c) the aluminum alloy rod material obtained in the step (b) is subjected to a batch-type annealing treatment; and (d) the aluminum alloy rod material obtained in the step (c) is subjected to an aging treatment, such that aluminum alloy is obtained. The invention also provides a power cable. According to the invention, through the selection and control over added elements and the adoption of a reasonable preparation process, the obtained aluminum alloy is provided with good comprehensive performance.