The invention discloses a novel oncolytic virus and its preparation method and application. The oncolytic virus genome contains gene coding sequences of anti-human CTLA4 antibody and human IL-21, and can express anti-human CTLA4 antibody and human IL-21 21. Combining the tumor-suppressing effect of immunotherapy with the oncolytic effect of viral therapy, an oncolytic virus capable of highly expressing the αCTLA4-Fc(ALIE)-IL21 gene was prepared, and the oncolytic virus exerted an oncolytic effect to lyse the tumor At the same time, it can kill regulatory T cells (Regulatory T Cells, Treg) in the tumor microenvironment by expressing a large amount of αCTLA4‑Fc (ALIE), or block its inhibitory effect, thereby up-regulating the immune response of the tumor microenvironment and improving the anti-tumor effect At the same time, the oncolytic virus expresses a large amount of IL21, further activates the killing function of T cells and NK cells in the tumor microenvironment, and exerts multiple anti-tumor effects. Compared with simple gene therapy or virus therapy, it has enhanced its ability to kill malignant tumors.