The invention discloses an antibacterial fabric and a preparation method thereof, and relates to the technical field of fabric preparation equipment. The fabric comprises the following raw materials of wool fibers, soybean protein fibers, bamboo charcoal fibers, chitin fibers, coconut carbon fibers, cotton fibers and modal fibers. An antibacterial finishing agent is composed of the following raw materials of nano silver, water-soluble chitosan, aloe powder, menthol, camphor, a traditional Chinese medicine extracting solution, ethyl p-hydroxybenzoate and dimethyl dioctadecyl ammonium bromide. The antibacterial finishing agent in the novel antibacterial fabric provided by the invention is scientific and reasonable in component proportion; through the synergistic interaction of the ethyl p-hydroxybenzoate, the menthol, the camphor and the traditional Chinese medicine extracting solution, the novel antibacterial fabric provided by the invention has the functions of comfort, antibiosis, itching relieving, moisture conduction, sweat release, heat preservation and the like; the antibacterial fabric is simple in structure, low in cost, wide in raw material source, very excellent in antibacterial effect and long in antibacterial time, and has a broad-spectrum antibacterial effect; and the preparation method is simple, convenient and easy to operate.