The invention discloses a preparation method of loach feed with high utilization efficiency. The method includes the steps of: crushing sweet sorghum, buckwheat powder, peanut powder, coconut meal, fermented tea seed meal, mulberry leaf powder, expanded blood meal, earthworm powder and palm meal, and performing sieving to obtain a first material; mixing potato starch, a Chinese herbal additive, stone flour, calcium hydrogen phosphate, malt selenium, kelp powder, fructooligosaccharide, vitamin and a feeding attractant evenly to obtain a second material; adding water into the first material, conducting steaming under ordinary pressure, performing cooling, then adding the second material and further conducting stirring and granulation, thus obtaining the loach feed with high utilization efficiency. The feed obtained by the invention has balanced nutritional ingredients and good palatability, improves the feeding ability of loach, effectively promotes intestinal peristalsis, accelerates the excretion of harmful substances, and has high feed conversion rate, reduces water pollution, enhances the loach constitution, increases the survival rate and accelerates growth, makes the loach growth state close to the wild and the taste good, and can achieve good economic benefits.