The invention discloses a preparation method of a sheep feed for livestock industry. The preparation method comprises the following steps: (1) cleaning crop straw, then crushing the cleaned crop straw to obtain crop straw powder, and compounding a trace element premix and a vitamin premix in parts by weight; (2) mixing corn, green grass, salt, wheat, the trace element premix, rapeseed meal, leave powder, the crop straw powder, the vitamin premix, dicalcium phosphate and sodium bicarbonate so as to obtain a mixture, and then conveying the mixture into a feed conditioner for conditioning treatment; and (3) transporting the conditioned mixed materials into a granulating machine for granulation to obtain granules, then extruding the granules, puffing the extruded granules, cooling the puffed granules, and packaging the cooled granules so as to obtain finished products. The crop straw and Chinese herbal medicine straw are processed and crushed in proportion so as to obtain crop straw powder and Chinese herbal medicine straw, then the bran, bean meal cakes, corn flour and table salt are mixed with the crop straw powder and the Chinese herbal medicine straw powder, and the feed is prepared from natural raw materials according to a compounding ratio. The feed belongs to a fully natural feed, is free from hormones or pesticides, and is safe and reliable.