The invention discloses an annular semiconductor laser of a vertical coupling structure and a preparing method thereof. An annular active resonator cavity is any one closed loop composed of ridge type waveguide and strip type waveguide, a P type electrode and an N type electrode are arranged on the annular active resonator cavity, laser light in the annular active resonator cavity is coupled to strip type straight waveguide through a vertical coupler, and the strip type straight waveguide outputs the laser light. An N type lower wrapping layer, a first gradual-change refractive index limiting layer, a first barrier layer, a multiple quantum well active layer, a second barrier layer, a second gradual-change refractive index limiting layer, a P type upper wrapping layer and a P type contacting layer which have preset thicknesses and concentration are successively formed by means of a metal organism chemical vapor deposition or molecular beam epitaxy method. A plurality of epitaxial layers are etched by using a SiO2 image as a mask, the etching depth is less than or equal to a first height and greater than or equal to a second height, and the annular active resonator cavity is transferred to a chip. The obtained annular semiconductor laser has the advantages of being simple in process, low in cost, stable in performance of parts, high in reliability and the like.