The invention discloses a wear-resistant and high-toughness polyphenylene sulfide composite material and a preparation method thereof. The composite material is composed of the following components of, by weight, 30-75 parts of polyphenylene sulfide, 20-50 parts of glass fibre, 5-20 parts of carbon fiber, 5-30 parts of a toughening agent, 0-20 parts of polytetrafluoroethylene, 0-20 parts of an ultrahigh molecular weight polyethylene, 2-10 parts of molybdenum disulfide, 0.2-1.5 parts of a coupling agent, 0.2-1 part of an antioxidant, 0.1-0.5 part of a light stability agent and 0.2-2 parts of a processing auxiliary agent. The composite material has a series of outstanding advantages of excellent low-temperature impact performance, high strength, high modulus, high heat stability, easy processing and molding, and the like, and has wide application fields such as automobiles, aeronautics and astronautics, etc.