The invention relates to the technical field of polymer materials and particularly relates to a high strength and low shrinkage PP/COC alloy material and a preparation method thereof. The high strength and low shrinkage PP/COC alloy material is prepared from 20 to 80 parts by weight of polypropylene, 20 to 50 parts by weight of a cycloolefin copolymer, 1 to 5 parts by weight of a compatibilizer, 1 to 5 parts by weight of a toughener, 0.1 to 0.5 parts by weight of a dispersant, 0.2 to 0.8 parts by weight of a lubricant and 0.1 to 0.3 parts by weight of an antioxidant. The PP/COC alloy material has the advantages of high strength, low shrinkage rate, good dimensional stability, excellent toughness, corrosion resistance, abrasion resistance, oil resistance, impact resistance, good film moldability, good processing performances, low cost and high use value. The preparation method has simple processes, is easy to operate and control, realizes stable quality, has high production efficiency, realizes a low production cost and is suitable for large-scale industrialized production.