The invention provides a copper-based repair alloy and a preparation method thereof. The copper-based repair alloy comprises 20% to 70% of Cu, 20% to 70% of Zn, 0 to 5% of Sn, 0.2% to 6% of Si, 0.02%to 5% of Ge, 0.2% to 5% of In, 0.01% to 0.5% of Ce, 0.1% to 2.5% of Al and 0.01% to 0.7% of Y. Except for the main elements including the Cu, the Zn and the Sn, the trace elements are added in the form of intermediate alloys in the preparation process, wherein the Si, the Ge, the In, the Ce and the Al are added in the form of copper-based master alloys, and the Y is added in the form of an Al-Y intermediate alloy. Through inert gas for protection of mixing and smelting, a pelletizing device is used for preparing near-spherical repair particles. 925 silver jewelry prepared by using the copper-based repair alloy has few surface defects, the anti-vulcanization dullness and discoloration performance is good, the requirements for the hardness and white brightness of wax setting are met, and thestrength requirements pull wires and pressing sheets can be met.