The invention discloses dried beef with a grapefruit peel flavor and a preparation method thereof. The dried beef with the grapefruit peel flavor is prepared from, by weight, 16-18 parts of grapefruit peels, 240-250 parts of beef, 1-2 parts of lilacs, 2-3 parts of fructus aurantii, 1-2 parts of radix codonopsis, 1-2 parts of leaves of holy basil, 6-8 parts of table salt, 2-4 parts of selfheal, 2-3 parts of screwtree roots, 3-5 parts of chrysanthemums, 2-3 parts of dioecious balanophora herb, 12-15 parts of tartary buckwheat, 6-8 parts of kudzuvine root powder, 8-10 parts of honey, an adequate amount of pomegranate seed oil, 8-10 parts of jackfruit kernels, 20-25 parts of chrysanthemum wine, 8-10 parts of sauropus androgynus and 6-8 parts of rosmarinus officinalis. The prepared dried beef with the grapefruit peel flavor is fragrant, crispy and chewy, combines the fragrant and sweet flavors of the grapefruit peels and is capable of promoting Qi circulation, promoting digestion and relieving abdominal distension and inappetence and unique in flavor, various traditional Chinese medicine components are added to the formula, the health-care function is improved, the effects of clearing the liver, removing toxin, clearing heat to decrease internal heat, tonifying the kidney, nourishing Yin and the like are achieved, straw is adopted for coating baking, the flavor is better achieved, and the dried beef with the grapefruit peel flavor is a novel flavored dried beef product which has the advantages of being green, healthy, complete in nutrition, leisure, convenient and the like.