The invention relates to a drug eluting balloon catheter and a preparation method thereof, and relates to the field of medical instruments. The balloon catheter comprises a balloon catheter body and acompacting drug layer which covers the outer surface of the balloon catheter body, the raw materials of the compacting drug layer comprise an active drug, a carrier and a solvent, the active drug isselected from at least one of the paclitaxel, paclitaxel derivative, rapamycin and rapamycin derivative, the carrier is selected from at least one of the calcium disodium edetate, iohexol, ioversol, iopamidol, anhydrous glucose, sodium chloride, dextran, sodium lactate, calcium chloride and potassium chloride sequentially, the mass ratio of the active drug to the carrier is 20:1-1:2, the catheteris provided with the compacting drug layer with lower releasing rate, and therefore the losing amount of the active drug in the delivery process is effectively reduced. The method has the advantages of being simple to operate and controllable, the catheter is conveniently produced in large batches, and the compacting level of the compacting drug layer of the drug eluting balloon catheter preparedby means of the method is improved.