The invention discloses a preparation method of aluminum doped zinc oxide nano powder. A technological process of the preparation method is shown as follows: first synthesizing a zinc nitrate-urea white sol microemulsion, standing, then filtering, adding aluminum nitrate into a filtering liquid to form a zinc nitrate aluminum mixed solution; preparing a sodium carbonate solution, dropping both the sodium carbonate solution and the zinc nitrate aluminum mixed solution into a polyvinyl alcohol aqueous solution to synthesize a white precipitate precursor; standing and filtering, and thus obtaining the aluminum doped zinc oxide nano powder through deionized water leaching, drying, grinding, sieving and calcining of a filter cake. The aluminum doped zinc oxide nano powder obtained by the method has good dispersibility and less agglomeration, the powder particle size is between 5 and 30 nm, the particle size distribution range is narrow, and the morphology is spherical or quasi spherical. The method has the advantages of simple process, low cost, short reaction period, high yield, and easy control of the reaction processes, and is suitable for mass production; and compared with traditional methods, the powder produced by the method contains no chlorine ion which can influence the performance of the powder, and the method needs no ethanol for washing, and no alkali for neutralization.