The invention discloses nanostructure tungsten alloy and a preparation method thereof. The alloy mainly comprises tungsten, and also comprises 0.05 to 1.0wt percent of zirconium and 0.2 to 2.0wt percent of rare-earth metal oxide particles, wherein the rare-earth metal oxide particle adopts yttrium oxide particles, lanthanum oxide particles or cerium oxide particles distributed in tungsten crystal particle. The method comprises the steps of firstly preparing ammonium paratungstate, rare-earth metal nitrate, citric acid and deionized water into transparent mixed liquor, stirring the transparent mixed liquor, obtaining gel after reaction, heating and drying the gel, then calcining the gel, so as to obtain a mixed powder of tungsten oxide and rare-earth metal oxide, putting the mixed powder into hydrogen atmosphere, so as to obtaining a mixed powder of tungsten and rare-earth metal oxide after reduction reaction, mixing the mixed powder with zirconium and zirconium hydride powder, so as to obtain a mixed powder of tungsten, zirconium, or zirconium hydride, and rare-earth metal oxide, and finally performing compaction and sintering to the mixed powder, so as to obtain the nanostructure tungsten alloy. The nanostructure tungsten alloy can be applied to fields of lighting, high-temperature components, aerospace devices, high temperature resistance containers and the like.