The invention discloses fermented milk with the flavor of coconuts and a preparation method of the fermented milk. The raw materials of the method comprise the following components in percentage by weight: 9.5%-12.5% of nonfat dry milk, 3.0%-4.5% of coconut oil, 7.0%-8.0% of sugar, 0.002%-0.0026% of a fermentation agent, and the balance being water, and the percentage of each of the components presents the percentage of the weight of the component to the percentage by weight of the total weight of the raw materials. The method comprises the following steps: (1) mixing the nonfat dry milk, the coconut oil, the white sugar and the water so as to obtain a mixture, and stirring the mixture; (2) homogenizing the stirred mixture, disinfecting the homogenized mixture, cooling the disinfected mixture, adding the fermentation agent for fermentation until the end acidity is 70-85 DEG T; and (3) pouring the fermented mixture, cooling the poured mixture, and obtaining the fermented milk. The fermented milk with the flavor of the coconuts, disclosed by the invention, is good in homogeneity, fine and smooth in the state of tissues, and rich in flavor, has favorable stability and favorable mouth feel within the shelf life, and has the nutrient health care efficacy. The preparation method of the fermented milk is environmentally-friendly, energy-saving and suitable for industrialized production.