The invention discloses an instant shrimp sauce, which is made of the following components in mass percent: 10-20% fermented bean sauce, 5-10% peanut butter, 5-10% cooking wine, 3-5% salad oil, 1-20% 3% table salt, 5~10% sugar, 0.5~1% pepper powder, 1~3% chili powder, 1~3% chicken essence, 3~5% green onion and ginger juice, 3~5% compound stabilizer, and the balance is shrimp paste. The shrimp sauce of the invention is bright, bright and lustrous, moderately viscous, fine and uniform in texture, free from stratification, low in salinity, and good in color, taste and flavor. The invention also provides a preparation method of instant shrimp sauce, which comprises the following steps: (1) preparation of shrimp paste; (2) preparation of seasoning liquid; (3) blending and boiling. The preparation method of the invention has simple process steps, short preparation period and low cost, is suitable for large-scale industrial production, is not easily polluted in the preparation process, and has high safety.