The invention discloses organic bacterial manure for loosening soil and improving physical properties of soil and a preparing method thereof. The organic bacterial manure is prepared from a soil conditioner, dry manure, crop straw, amino acid, organic matter, amino acid chelated microelement fertilizer, a multifunctional biological agent and traditional Chinese medicine residue waste liquid. The soil conditioner is prepared from a soil loosening agent, fatty alcohol-polyoxyethylene ether sulfate sodium salt, slow release boron, slow release zinc, molybdenum, fermentation type humic acid, slow release silicon, a manure synergist and a crop rooting agent. The amino acid chelated microelement fertilizer is prepared from an amino acid chelating agent and a trace metal compound. By the adoption of the organic bacterial manure, nitrogen, phosphorus, potassium, organic acid, amino acid and multiple microelements can be provided, the physical property, chemical property and biological property of soil can be changed, soil is kept loose, and formation of the soil aggregate structure can be promoted, so that the permeability of soil is improved, side effects caused by chemical fertilizer are eliminated, the soil structure is improved, and soil is loose and does not harden.