The invention discloses a preparation method of cyclic tetrapolybutylene terephthalate. The method comprises the steps as follows: a) an initial material, namely, terephthaloyl dichloride, reacts with1,4-butanediol under the action of an alkaline reagent, and terephthalic bis(4-hydroxyl-butyl)ester, namely, a compound I, is obtained; b) the compound I reacts with monobenzyl terephthalate under the action of a condensing agent, and bis(4-(4-benzyloxy terephthaloyl)butyl)terephthalate, namely, a compound II, is obtained; c) the compound II is dissolved in a proper solvent, a catalyst is added to reduce debenzylation under the action of palladium-carbon and hydrogen, and 4,4'-[terephthaloyl bis(oxytetramethylene oxycarbonyl)]dibenzoic acid, namely a compound III, is obtained; d) the compoundIII reacts with the compound I under the action of a condensing agent, and the target product, namely, cyclic tetrapolybutylene terephthalate, is obtained. The method is low in cost, short in synthesis route, convenient to operate, high in product quality and good in industrial application value.