The invention relates to a laser welding diamond round saw blade and a preparation method thereof, which belong to the technical field of powder metallurgy material. The saw blade is used for solving the problem that the laser welding diamond round saw blade has lower speed and easy edge feed when used for cutting hard stones. The material of a cutting head is prepared from the following powder raw materials by weight percentage: 36 to 46 percent of copper, 28 to 38 percent of iron, 10 to 20 percent of cobalt, 3 to 10 percent of nickel, 3 to 9 percent of tin, 1 to 2.5 percent of silicon-chromium alloy, 1 to 1.6 percent of liquid paraffin wax and 1.0 to 2.2 percent of diamond, wherein the silicon-chromium alloy contains 40 percent of silicon, 30 percent of chromium and the balance being iron and small quantities of impurities according to mass proportion. The method adopts a mixed base material of the copper, the iron and the cobalt to improve the service life and the sintering performance of the saw blade and the added silicon-chromium alloy powder is dispersively distributed in a fetal body, thereby effectively improving the sintering performance of the fetal body so as to make the fetal body accelerate an alloying process. At the same time, the self-sharpening performance of the fetal body is improved, the holding force of the fetal body to the diamond is enhanced and the service life and the cutting performance of the saw blade are improved, thereby making the wear performance of the fetal body and the wear performance of the diamond be matched.