The invention provides a rare-earth-containing microalloy enhanced copper alloy for a motor rotor and a preparation method thereof. In the preparation method, pure microalloy enhanced elements silicon, iron, mixed rare earth alloy and boron are added in copper, wherein the content of silicon is 0.18%-2.0% by mass, the content of iron is 0.5%-1.0% by mass, the content of the mixed rare earth alloyis 0.08%-0.36% by mass, the content of boron is 0.001%-0.01% by mass, impurities are trace, and copper is the balance. The preparation method comprises the following steps of: (1) preparing materials; (2) adding Fe and electrolytic copper; (3) fusing; (4) adding a silicon copper alloy and a boron copper alloy, and finally adding the mixed rare earth alloy; and (5) pouring into an ingot blank. Through adding the microalloy enhanced elements such as silicon, iron, mixed rare earth alloy, boron and the like in the copper base body, the comprehensive requirements of the material on mechanical properties and electrical conductivity when in use can be fully met.