The invention discloses silver oxide antimicrobial viscose fiber and a preparation method thereof by in-situ reaction. The silver oxide in an antimicrobial viscose fiber is generated by the in-situ reaction, wherein the linear density of the fiber is 0.3-7.0 dtex, the breaking strength is 0.8-3 cN/dtex, the breaking elongation is 8-25%, the silver ion content is 5-92 mg/g, the sterilizing rates on escherichia coli and staphylococcus aureus are 92% and 88% above respectively, and the sterilizing rates after washing for 20 times are 85% and 82% above respectively. The silver oxide in the viscose fiber disclosed by the invention is small in particle size, uniform in distribution, and excellent in antimicrobial and mechanical properties, and can be widely applied in the fields such as clothing, decoration, safeguards, architecture and biomedicine. The method disclosed by the invention is to uniformly disperse generated silver thiosulfate in a spinning solution, and then utilize the acidity in a coagulating bath to decompose the silver thiosulfate to obtain the silver oxide with the antimicrobial effect. The method is ingenious in conception, greatly improves the antimicrobial performance of the fiber, and further is mature in technology, simple in process, easy to control and beneficial to industrial production.