The invention discloses a feed additive for improving the yield and quality of sheep wool, feed and a preparation method. The additive comprises processed radix aconiti lateralis, Chinese dates, loofah sponge, kudzu vine root, common bombax flowers, asarum sieboldii, gynostemma pentaphylla, holy basil, fructus aurantii and dried ginger. The feed additive takes the radix aconiti lateralis, the Chinese dates, the loofah sponge, the kudzu vine root, the common bombax flowers, the asarum sieboldii, the gynostemma pentaphylla, the holy basil, the fructus aurantii and the dried ginger as raw materials, by using the synthetic effects of the materials, rich nutrients are provided for sheep, blood circulation of the sheep and metabolism of epithelial cells are promoted, synthesis of wool keratin ispromoted, the growth speed and yield of the wool are improved, and the wool is slender and white. Meanwhile, the traditional Chinese medicine components have the effects of clearing away heat and toxic materials, tonifying middle-jiao and qi, nourishing blood and soothing the nerves and the like, can improve the immunity of sheep bodies, absorption and utilization of the effective components suchas nutritional ingredients and microelements in the feed for the sheep are improved, the growth speed and yield of the wool are further increased, and the economic benefit of sheep breeding is greatly improved.