The invention discloses a spicy and hot beef sauce in red chilli oil and a processing method thereof. The spicy and hot beef sauce is prepared from following raw materials including: celery, mulberry leaves, beef, germinated brown rice, pu'er tea powder, cassava starch, litsea, vernonia cinerea, polygonum lapathifolium, flowers of panax notoginseng, Alternanthera philoxeroides, herb of gold stargrass, greenish lily seeds, pepper powder, chilli powder, the red chilli oil, a proper amount of coix seed oil, salt, soybean paste, and nutritional additives. The spicy and hot beef sauce in the red chilli oil is thick and mellow in sauce fragrance, is spicy and hot in taste, is smooth and fine in mouthfeel, can be used for being eaten together with rice or bread and flavoring and color adjusting, is rich in vitamins, microelements, dietary fibers, amino acids and the like, is rich and balanced in nutrition, is added with various traditional Chinese medicine health-caring components, has effects of clearing heat and cooling blood, diminishing inflammation and removing toxin, and bacterial proofing, and is beneficial to human health.