The invention discloses an efficient, energy saving and power improving fuel additive. The efficient, energy saving and power improving fuel additive is prepared from, by weight, 20-40 parts of lauric isopropanolamide, 10-15 parts of polyisobutylene sulfide phosphating barium salt, 5-10 parts of polyisobutylene diimide, 0.5-1 part of an organosilicon compound, 0.5-1 part of sulfide plant fatty acid ester, 0.5-1 part of octyl glycoside, 10-25 parts of petroleum ether, 5-15 parts of a combustion improver and 0.1-0.2 part of a surfactant, wherein the combustion improver is obtained by mixing hydroxyethylferrocene with polyvinyl methyl ether according to the weight ratio of 1:1-3. The invention further provides a preparation method of the efficient, energy saving and power improving fuel additive. By the arrangement, combustion efficiency of fuel can be remarkably improved, the fuel can be combusted completely, engine power is improved, fuel consumption is reduced, carbon contamination can be removed, exhaust gas emission is reduced, and wide application prospect is achieved.