The invention discloses a two-step method for preparing olefin and aromatic hydrocarbon by catalyzing and upgrading bio-oil. Aqueous-phase bio-oil serves as a raw material, and the method comprises the following steps of: performing selective hydrogenation the aqueous-phase bio-oil, converting into stable compounds, and performing zeolite catalytic conversion on the stable compounds to obtain hydrocarbon compounds, wherein the selective hydrogenation is performed in a pressurized reactor, and the reaction conditions are that: the reaction atmosphere is hydrogen, a Ru / C and a Pt / C are catalysts, the temperature is between 100 and 300 DEG C, the mass space velocity is 1 to 5h<-1>, and the pressure is 5 to 15 MPa; the zeolite catalysis is performed in a normal pressure reactor, and the reaction conditions are that: the reaction atmosphere is hydrogen or nitrogen, the catalyst is HZSM-5, the temperature is between 350 and 650 DEG C, and the mass space velocity is 5 to 50h<-1>. The obtained olefin and aromatic hydrocarbon have the carbon yield of 30.3 to 50.8 percent and 18.4 to 26.8 percent respectively, and the catalysts for hydrogenation and zeolite catalysis have high stability.