The invention discloses a multi-phase oxide grain enforced copper-based compound material and the preparation method thereof. The weight percentage of components is Al2O3: 0.1 to 2.0, La2O3: 0.1 to 2.0, Y2O3: 0.1 to 2.0, and the surplus is Cu. The preparation method is realized by that alloy elements of Cu, Al, La, and Y are proportioned according to the alloy design component proportion, and the CuAlLaY alloy ingot blank is prepared through the vacuum spraying forming technology and the device; the insitu chemical reaction processing is performed to the copper alloy by controlling the oxygen partial pressure, to prepare CuAl2O3La2O3Y2O3 system compound material; the compound material is performed with the processing technologies of forging, extruding, rolling, drawing, and heat treatment, to be prepared into products of complex shapes of bar material, plate material, sheet material, silk material, profile shaped material or contact, to realize even coagulation, short flow and near forming and processing; the new material has high conduction and heat conduction property, thermal stability and heat strength, electric contact properties of abrasion resistance, corrosion resistance, arc burning resistance and melting welding resistance, and intensity and processing property are more excellent than the material prepared in the conventional fusion casting method and the powder metallurgy method, and the production cost is greatly reduced.