The invention discloses a medicinal liquor for invigorating the kidney and strengthening Yang and a preparation method thereof. The medicinal liquor comprises raw herbal materials and wine, wherein the raw herbal materials comprise, by weight, 8-15 parts of hippocampi, 10-20 parts of cornu cervi pantotrichum, 7-15 parts of ganoderma, 3-8 parts of epimedium herb, 5-10 parts of radix codonopsis, 5-12 parts of herba cistanche, 2-10 parts of American ginseng, 5-10 parts of crocus sativus, 5-20 parts of fructus lycii, 5-20 parts of red jujubes, 5-20 parts of mulberry fruits and 100 parts of Baijiu.The medicinal liquor prepared by using the preparation method is mainly used for invigorating the kidney and strengthening Yang, the high-quality raw herbal materials are selected, on the basis of reserving nutrient ingredients of the materials and the health-care function, the raw herbal materials are processed and prepared, the medicinal liquor has the functions of enhancing the physical strength, improving the sexual function, improving the vascular elasticity and thus reducing the hypertension risk, the medicinal liquor is suitable for deficiency of the kidney, impotence, prospermia, lumbagos, weakness, prematurely senile and other disease symptoms, and the medicinal liquor has a certain treatment effect on diabetes, cerebral infarction and cerebral thrombosis.