The invention discloses an amino acid liquid mineral fertilizer wrapped by microcapsules and a preparation method of the fertilizer, and belongs to the field of fertilizer production. The preparation method comprises the steps that 60%-75% of composite amino acid liquid with the content ranging from 10% to 25%, 1%-5% of medium trace elements, 1%-5% of potassium fulvic acid, 17%-32% of mineral fertilizer, 1% of stabilizer, 1% of release controlling agent and an appropriate amount of sodium hydroxide aqueous solution are taken as the raw materials, production and microencapsulation of liquid fertilizer and solid fertilizer are conducted, and a finished product is obtained. The production method and the product have the advantages that the production cost is low, energy conservation and environment friendliness are achieved, the water-retaining capacity is high, nutrient elements needed by crops can be provided, besides, the effects of adsorbing heavy metal and morbid substances in soil, balancing soil nutrients, activating soil vigor, promoting metabolism of the crops and improving resistance and immune function of the crops can be achieved, the yield is generally increased by about 20%, the effects of improving drought resistance, premature aging resistance and continuous cropping resistance of the crops can be achieved, and the amino acid liquid mineral fertilizer is a pure natural product and free of toxic and side effects.