The invention discloses Tibetan red yeast rice and a preparation method thereof. The preparation method comprises the steps that 1, highland barley, auxiliary materials and a nutrient solution are mixed and then cured, and a fermentation substrate is obtained, wherein the nutrient solution comprises the following components in parts by weight: cane sugar, glutamic acid, histidine, calcium nitrate, sodium nitrate, monopotassium phosphate, n-caprylic acid, ascorbic acid, EDTA-disodium and water; (2) the fermentation substrate is inoculatedwith a monascus strain seed solution, and fermented to obtain a fermented product; and (3) the fermented product is dried to obtain Tibetan red yeast rice. The preparation method is good in process stability, small in component difference between batches and stable in quality. The nutrient solution, the fermentation process and the drying process are optimized, the content of lovastatin in the Tibetan red yeast rice is increased, and meanwhile the content of acid lovastatin can be effectively increased.