The invention discloses a catalyst used in fatty alcohol production with a fatty acid methyl ester catalyzed hydrogenation technology. The catalyst is composed of, by weight: 18-66% of a mixture of copper oxide and zinc oxide, 0-40% of one or two selected from manganese oxide and nickel oxide, 5-17% of alumina, and 0-45% of a carrier, wherein the carrier is diatomite or calcium carbonate. The catalyst is advantaged in environment friendliness, high activity, good product stability, and the like. The invention also discloses a preparation method of the catalyst used in fatty alcohol productionwith the fatty acid methyl ester catalyzed hydrogenation technology. The method comprises steps that: at least two soluble salts of copper, zinc, manganese, nickel, and aluminum are dissolved in water, such that a mixed solution is prepared; water, or a mixture of water and the carrier is adopted as a base solution; an aqueous solution of sodium carbonate and the mixed solution are dropped into the base solution with a co-current flow; when dropping is finished, a precipitate is obtained; the precipitate is aged, filtered, washed, dried, roasted, and pressed, such that a finished product is obtained. The preparation method is advantaged in simple technology, high operability, easy industrialization, and the like.