The invention discloses dielectric paste for a metal aluminum substrate thick film circuit and a preparation method thereof. The invention aims to prepare the dielectric paste matched with a metal aluminum substrate. The dielectric paste is characterized in that SiO2, Na2O, B2O3, K2O, BaO, CaO, Co2O3, TiO2, P2O5, V2O5, Sb2O3 and Cr2O3 are combined to prepare microcrystalline glass powder; and themicrocrystalline glass powder and an organic binder which consists of terpinol, butyl carbitol, butyl carbitol acetate, tirbutyl citrate, 1,4-butyrolactone, nitroncellulose, ethyecellulose, hydrogenated castor oil and lecithin are put in a vessel for stirring and rolling by a three-roll roller mill in a weight ratio of the microcrystalline glass powder to the organic binder of 70-90 parts: 30-10 parts so as to prepare the finished product dielectric paste. The dielectric paste is mainly used as the dielectric paste of the thick film circuit formed by being printed on the metal aluminum substrate.