The invention discloses an aluminum alloy cylinder sleeve for an automobile engine. The aluminum alloy cylinder sleeve comprises a tubular aluminum alloy substrate and a chromium coated layer, wherein the chromium coated layer is arranged on the inner surface of the aluminum alloy substrate; the aluminum alloy substrate is prepared from the following aluminum alloys in percentage by weight: 13-15% of Si, 1-2% of Cu, 0.2-0.5% of Mg, 0.1-0.3% of Mn, 0.1-0.3% of Cr, 0.1-0.3% of C, 0-0.5% of Zn, 0-0.15% of Ti, 0.1-0.3% of RE and the balance of Al. The invention further provides a preparation method of the aluminum alloy cylinder sleeve for the automobile engine. By adopting the aluminum alloy cylinder sleeve, the strength, the hardness, the high temperature stability and the wearing resistance of a cylinder sleeve are improved, the use property of the aluminum alloy cylinder sleeve is improved, the service life of the aluminum alloy cylinder sleeve is prolonged, and requirements of a conventional engine can be met.