The invention discloses a regenerated high-performance lubricating grease of waste internal combustion engine oil and a preparation method thereof. The preparation method comprises the steps of adding deep refined waste internal combustion engine oil and fatty acid into a reaction container, slowly heating till the fatty acid is completely dissolved, dissolving lithium hydroxide into water and then adding the solution into a reaction kettle, performing saponification for 2-3 hours at 100-110 DEG, heating to 140 DEG C, adding 1/4 of the formula quantity of the waste internal combustion engine oil, heating to 190-210 DEG C, refining at a high temperature for 10-20 minutes, adding the remaining waste internal combustion engine oil, cooling to be below 160 DEG C, adding an antioxidant, an extreme pressure agent, an oiliness agent and a thickening agent, then performing post treatment with a homogenizer or by cyclic shearing, filtering and packing. The produced lubricating grease has the characteristics of multiple effects, universality and the like, also has good lubricating performance and extreme pressure anti-wear performance, and can meet the requirements of most bearings for lubrication and protection and realize low-cost recycling of the waste internal combustion engine oil.