The invention discloses a high-toughness medium entropy high temperature alloy and a preparing method thereof. The alloy comprises chemical components including, by weight percent, 28.5 to 32.5% of Cr, 31.5 to 33.4% of Co, 32 to 35% of Ni, 0.5 to 6% of Al, 0 to 6% of Ti, 0 to 3% of Ta, 0.02 to 0.12% of C, 0.002 to 0.015% of B, 0.005 to 0.12% of Zr, 0.005 to 0.15% of RE, and larger than or equal to2% and smaller than or equal to 6% of Al+Ti+Ta, wherein Re is one of Ce, La and Y. The preparing method of the alloy comprises the steps that the raw materials are burdened and smelted according to the proportion, an electrode bar is forged and subjected to remelting, forging is carried out, an alloy bar is prepared, and the alloy bar is subjected to solid solution and aging heat treatment. The alloy is provided with a reasonable component ratio, a wide heat machining window and a heat processing system, the prepared alloy bar has the higher temperature strength, good heat machining and oxidation resistance properties, and the alloy is a candidate material of aero-engine and industrial gas turbine heat end parts.