The invention discloses a preparation method of jade polishing powder. The method is characterized by comprising the steps of feeding 12-26% of cerium chloride and 20-32% of zirconium oxychloride into a reactor according to the mass percent concentration, and dissolving the mixture in water; then, feeding 15-30% of aluminium oxide, 8-15% of silicon nitride, 2-6% of chromic oxide and 0.5-3% of dispersing agent into the water solution, and stirring to obtain slurry; dissolving 15-30% of ammonium oxalate into water, and then feeding the product into the slurry, wherein the sum of the content of all the components except water of the slurry is 100%; stirring under the normal pressure, heating up to 85 DEG C, and carrying out a reaction for 30-36h; then, heating up to 120 DEG C, and carrying out the reaction for 2-4h; carrying out calcination for 2-4h at the temperature of 950-1000 DEG C, cooling and crushing by airflow to obtain the jade polishing powder. The preparation technology is simple, easy in control of conditions, low in production cost and easy in industrial production. When being used for the polishing process, the polishing powder is good in powder polishing effect, high in glossiness, free from scratch, high in flatness and less in power dosage.