The invention relates to a preparing method for fine sheet metal magnetically soft alloy powder and belongs to the technical field of metal and alloy powder preparation. The method comprises the steps that two or three of Fe, Si, Al, Ni and Mo are selected as raw materials to carry out alloy distributing; a medium-frequency induction furnace is adopted for carrying out alloy smelting; a two-flow atomization method is adopted for carrying out atomizing on a melt, and alloy powder approximately spherical is prepared; by means of mechanical milling, flattening is carried out on the alloy powder; annealing treatment is carried out on the obtained sheet powder, and by means of an ultrasonic vibrating sieve, the fine sheet metal magnetically soft alloy powder is prepared. The powder prepared through the method, the granularity ranges from 10 micrometers to 100 micrometers, the average thickness ranges from 0.1 micrometer to 5 micrometer, the radial thickness ratio ranges from 50 to 500, and the powder flattening rate reaches 90%. According to the method, the powder preparing process is simple, the production efficiency is high, the production cost is low, the quality of the magnetically soft powder core can be effectively improved, and the manufacturing cost is reduced.