The invention relates to an ecological floating island phosphorous removal composite medium and a preparation method thereof. The preparation method comprises the following specific preparation processes: S1, respectively carrying out drying pretreatment on aluminum sludge, steel slag and a coconut shell fiber, grinding into powder, and mixing so as to obtain aluminum sludge powder, steel slag powder and coconut shell fiber powder; S2, weighing the following components made in the step S1 in percentage by weight: 40-50% of the aluminum sludge powder, 20-30% of the steel slag powder, 10-20% ofthe coconut shell fiber powder, 5-10% of an adhesive and 5-10% of starch for later use; S3, mixing the aluminum sludge powder, the steel slag powder and the coconut shell fiber powder weighed in the step S2 so as to obtain first mixed powder; S4, sufficiently stirring the adhesive and the starch weighed in the step S2 with the first mixed powder made in the step S3, adding water, carrying out pelletizing and medium/high temperature thermal treatment, and cooling, thereby obtaining ecological floating island phosphorous removal composite medium granules. The ecological floating island phosphorous removal composite medium has the advantages of being low in cost, good in phosphorous removal effect, effective in waste resource recycling, and good in pore structure.