The invention discloses an improved novel fertilizer and a preparation method thereof. The fertilizer is prepared from following raw materials in parts by weight: 40-50 of decomposed farmyard manure, 25-30 of straw scraps, 15-20 of urea, 10-15 of alginic acid, 11-14 of boric acid, 5-10 of acrylic acid, 5-8 of polyacrylamide, 15-20 of sodium sulfate, 10-15 of zinc sulfate, 2-5 of cobaltous sulfate, 4-9 of potassium chloride, 3-8 of glycol, 11-14 of copper sulfate, 10-13 of sodium molybdate, 5-10 of manganese sulfate, 1-2 of an EM microbial inoculum and 7-11 of a soil modifier. The decomposed farmyard manure, the straw scraps, and other raw materials are adopted by the fertilizer. The raw materials are convenient to take, low in cost and comprehensive in nutrition, and can improve the soil structure. The urea, the alginic acid, the boric acid, the acrylic acid, and other chemical raw materials are added for supplementation, thus fully utilizing resources, reducing the production investment, and reducing pollution caused by chemical fertilizers. The added alginic acid not only contains a large quantity of organic materials, more than forty mineral elements such as potassium, calcium, magnesium, iron, etc. and rich vitamins, but also contains algal polysaccharides, highly unsaturated fatty acids and a plurality of natural plant growth regulators, and has high biological activity.