The invention relates to the technical field of photoelectric materials, and discloses a magnesium-doped zinc oxide magnetron sputtering target material and a preparation method thereof. The preparation method comprises the steps that 1, zinc oxide powder is doped with magnesium oxide powder and third oxide powder, and then the mixed powder and an ethanol solution are mixed so as to form slurry; (2) ball milling is carried out on the slurry, and then drying and sieving are carried out so as to obtain powder for molding; (3) isostatic cool pressing is carried out on the powder so as to form a green body; and (4) the green body is slowly heated to 900-1150 DEG C, heat preservation is carried out for 30-90 minutes, then the green body is quickly heated to the sintering temperature of 1300-1450 DEG C, heat preservation is carried out for 120-480 minutes, slow cooling is carried out so as to form a semi-finished product, and cutting and polishing are carried out so to obtain the magnesium-doped zinc oxide magnetron sputtering target material. The target material has the advantages that the density is high, the relative density is greater than 95% or above, meanwhile, the electrical resistivity is low and can reach 4*10<-2>, the resistance of the target material is far lower than the resistance of a target material in the prior art, the conductive effect is good, and the requirement for medium-frequency rapid sputtering of a coating production line can be met.