The invention relates to a waste-carbon-fiber-reinforced polybutylene terephthalate composite material and a preparation method thereof, belonging to the field of polymer-base composite material. The composite material is prepared from 65.0-90.0 wt.% of reinforced polybutylene terephthalate, 5.0-30 wt.% of waste carbon fiber subjected to surface treatment, 0.1-0.3 wt.% of antioxidant and 3.0-8.0 wt.% of toughener. The preparation method comprises the following steps: cleaning the surface of waste carbon fibers, activating and drying; adding the waste carbon fibers into a double screw extruder through a side feed port; carrying out melt blending extrusion on the waste carbon fibers with polybutylene terephthalate, a toughener and an antioxidant by using the double screw extruder; and drawing the extruded melt, cooling with water, screening, granulating and drying. The composite material has the characteristics of high strength, high modulus, high toughness, high heat deformation temperature, favorable heat resistance, favorable static resistance, wear resistance and creep resistance; and the product has the advantages high cost performance and simple preparation method, and can be widely used in the fields of electronic and electric parts, automobile accessories, household appliances and the like.