The invention belongs to the technical field of preparation of a flame retardant, and particularly relates to a preparation method of modified aluminium hypophosphite. The preparation method comprises the following steps: dissolving sodium hypophosphite into water to prepare sodium hypophosphite solution, adding phosphate, and stirring at high speed and dissolving; dissolving aluminum chloride and polyethylene glycol into water to prepare aluminum chloride solution; stirring at 10-30 DEG C, normal pressure and high speed, adding the aluminum chloride solution into the sodium hypophosphite solution, slowly stirring and reacting to obtain turbid solution containing aluminum hypophosphite; pumping the turbid solution into a centrifugal machine for centrifuging, washing with water, and drying to obtain the modified aluminium hypophosphite. The prepared modified aluminium hypophosphite can be excellently dispersed into a high-molecular material, the mechanical performance and flame-retardant property of the high-molecular material can be obviously improved, and the electrical property of resin can be maintained; the preparation is simple in technology, temperature rise and regulation of pH value of the reaction solution are not needed, the yield can achieve up to 98.0%, and the modified aluminium hypophosphite is pollution-free and environmental friendly.