The invention relates to a Zr:Fe:LiNbO3 crystal and the preparing method thereof, relating to a crystal and the preparing method thereof. And the crystal is made of ZrO2, Fe2O3, LiCO3 and Nb2O5 with the same purity of 99.99%, where the ZrO2 doping quantity is 2-6mol%, the Fe2O3 doping concentration is 0.01-0.04wt%, and the molar ratio of Li to Nb is 0.946. and the preparing method comprises the steps of: 1. weighing ZrO2, Fe2O3, LiCO3 and Nb2O5 and fully mixing them; 2. placing the ready-mixed raw materials into a Pt pot, and making crystal growth by Czochralski method; 3. polarizing the obtained crystals in the step 2; then accurately orienting the polarized crystals and cutting by Y surface and making optical quality polishing on the crystal surfaces and obtaining Zr:Fe:LiNbO3 crystals. And the Zr:Fe:LiNbO3 crystal can act as huge-capacity holographic memory. And the invention has advantages of small reduced amplitude of diffraction efficiency, short read-in time, high flexibility and strong optical loss resistance.