The invention relates to a magnesium/steel layered composite material and a preparation method thereof, belonging to the field of metal layered composite materials. The magnesium/steel layered composite material of the present invention is formed by interfacial metallurgical bonding of magnesium material and steel material, without an intermediate layer between the magnesium material and the steelmaterial, and is prepared by the steps of mechanical grinding surface treatment, alternating lamination and combination to form composite blanks, wrapping the composite blanks with metal sleeve and performing vacuum treatment, heating, hot rolling, diffusion heat treatment after removing the metal sleeve, and the like. The invention has the advantages that the magnesium/steel layered composite material has both excellent mechanical properties and vibration damping properties, can be used at the working temperature of 200-600 DEG C for a long time without solid solution or intermetallic compound at that interface between magnesium and steel, the interfacial bonding strength is stable or even gradually increased in the working temperature range, and the magnesium/steel layered composite billet need not be heated in vacuum or inert gas atmosphere, so the operation is convenient, the requirement for equipment is low, the price of required equipment is cheap, and the production cost is low, so the composite billet has universal popularization and application value.