The invention discloses a biological pesticidal organic fertilizer and a preparation method thereof. The biological pesticidal organic fertilizer is prepared from the following raw materials in parts by weight: 40-50 parts of pig manure, 20-30 parts of tea seed pulp, 10-15 parts of coffee grounds, 8-12 parts of paulownia sawdust, 5-10 parts of phosphogypsum, 4-8 parts of corn cob, 5-10 parts of pepper seed cake, 10-15 parts of mushroom dreg, 8-12 parts of wheat bran, 15-20 parts of bentonite, 10-15 parts of opoka, 2-3 parts of ferrous sulfate, 1-2 parts of manganese sulfate, 3-5 parts of humic acid, 1-2 parts of chinese tallow tree root and bark, 2-3 parts of sophora alopecuroides, 1-2 parts of stemona, 1-3 parts of Artemisia annua, 1.5-2.5 parts of ailanthus leaf, 2-3 parts of derris and 1-2 parts of Radix Euphorbiae Ebractealatae. The organic fertilizer disclosed by the invention has multiple effects of providing nutrients, improving the soil structure, preventing and treating pests and diseases and the like, can promote the crops to quickly grow, enhances the stress tolerance of the crops, can have favorable preventing and treating effects on nematodes and soil insects, reduces or avoids use of chemical pesticides, enhances the soil fertility, regulates the ecological equilibrium of soil, improves the quality of agricultural products, has no chemical residues, and implements yield increase and income increase of agricultural products.