The invention discloses a wood-plastic composite material and a preparation method thereof. The wood-plastic composite material is prepared from the following raw materials in part by weight: 30 to 80 parts of modified plant fiber, 20 to 70 parts of plastic, 2 to 10 parts of compatilizer, 2 to 10 parts of lubricant, 0.2 to 1.0 part of antioxidant, 5 to 15 parts of filler and 2 to 10 parts of flame retardant. The preparation method comprises the following steps of: preparing the modified plant fiber which is separated from each other and of which the surface is coated with lignin by using wood fiber, namely cotton stalks by a blasting treatment method, compounding the modified plant fiber and the plastic, and extruding to form a finished product material. By the method, the technical problem of low compatibility of wood fiber and thermoplastic plastic is solved, the comprehensive utilization of the wood fiber and the plastic is realized, timber can be replaced, and the added value of agricultural waste, namely the cotton stalks is increased. The prepared wood-plastic composite material has good mechanical properties, and high tensile strength, bending strength and impact strength; and the industrialized production of high-performance products such as constructional engineering materials is realized.