The invention discloses frankincense protein peanut butter and a preparation method thereof. The frankincense protein peanut butter is prepared from the following raw materials: peanut kernel, peanut protein flour, whey protein powder, condensed milk, semen coicis powder, pine nut powder, coix seed oil, root of rehmannia, the root bark of the peony tree, folium isatidis, radix puerariae, hovenia dulcis thumb, artichoke, receptaculum nelumbinis, houttuynia cordata, fresh imperata cylindrical root, chilli sauce, red camphor oil, salt, rice vinegar, vegetable oil and a proper amount of water. According to the frankincense protein peanut butter, multiple high-protein components are added, the nutrition is rich, and the added artichoke has the effects of clearing liver and improving vision, treating dyspepsia and improving the intestines and stomach; the folium isatidis has the effects of inhibiting bacteria and detoxifying; the frankincense protein peanut butter is safe to eat, has the effects of increasing the appetite, appetizing and going with rice. As the chilli sauce is added into the frankincense protein peanut butter, the color is increased, so that the color, smell and taste are complete in all varieties, and the frankincense protein peanut butter is a green food which is rich in nutrition and convenient to eat.