The invention relates to an emulsion explosive and a preparation method thereof. The emulsion explosive comprises the following components in parts by weight: 70-80 parts of ammonium nitrate, 5-6 parts of sodium nitrate, 10-15 parts of water, 3-4 parts of composite wax, 0.3-0.8 part of engine oil, 1-1.7 parts of composite emulsifying agent, 0.5-1 part of polymer emulsifying agent and 1.2%-1.7% (based on total weight of the components) of glass beads, wherein the composite emulsifying agent is a mixture of Span 80 and T152 emulsifying agent in a weight ratio of 6 to 4. According to the emulsion explosive disclosed by the invention, various indexes satisfy the relevant national regulations, and the performances reach three international standards, the gap distance for sympathetic detonation reaches 5, the performance quality of the explosive is improved and the burst effect is ideal. Moreover, the high polymer emulsifying agent is added to the explosive formula, so that the storage period of the emulsifying explosive is prolonged to one year from half a year, and therefore, the storage cost of the explosive is reduced. Meanwhile, the composite wax and the engine oil are used in the formula, so that the price is low, the resources are extensive and the production cost is reduced.