The invention provides a compound pesticide applied to vegetable cultivation and a preparation method thereof, and belongs to the technical field of pesticides. The compound pesticide is prepared from the following raw materials in parts by weight: peanut shell, waste shii-take sticks, poultry manure, cortex pseudolaricis, artemisia argyi, jasmonic acid, calcium chloride, diatomite and an insecticide, wherein the insecticide is prepared from the following raw materials in parts by weight: 0.5-3 parts of columbianetin, 10-30 parts of torreya grandis fruit, 10-30 parts of amaranthus mangostanus, 5-20 parts of buttercup, 5-20 parts of pomegranate peel, 5-20 parts of ailanthus altissima, 5-15 parts of berchemia, 3-12 parts of wild tobacco, 3-12 parts of hellebore, 3-12 parts of uniflower swisscentaury root and 1-10 parts of verbena. The compound pesticide is applied to the vegetable cultivation, can control a variety of diseases and insect pests, including black spot, anthracnose, leaf spot, plutella xylostella, bactrocera cucurbitae and the like, significantly improves the disease-resistant and insecticidal capabilities of a variety of vegetables, and is stable in pesticidal efficacy.