The invention discloses a special iodine-enriched fertilizer for paddy rice. The fertilizer is prepared from the following raw materials: animal dung, laver, laminaria japonica, mussel, sea shrimp shell, shell, nitratine, airpotato yam rhizome, Enteromorpha clathrata (Roth) Greville, an organic raw material, a composite trace element, animal amino acid, composite microbial strains, etc. The invention also discloses a preparation method of the fertilizer, comprising steps of crushing, fermentation, drying and pelletizing, etc. The nuisance-free fertilizer is prepared by fermentation of multiple iodine-enriched natural polymer organic matter. The fertilizer is absorbed by paddy rice, then converted and finally eaten by human, thus achieving the purpose of supplementing iodine. By the addition of straw, soybean meal, etc., contents of mineral and organic matter in soil are increased, soil permeability is enhanced, water retention is improved, soil fertility is boosted, negative effect of poor soil quality caused by long-time application of lots of inorganic fertilizers is prevented, soil disease can be effectively controlled, rice root development can be promoted, yield of rice is increased, and rice quality is enhanced.