The invention discloses a rare earth copper alloy and its preparation method, which comprises charging electrolytic copper by weight percentage, smelting 20-30 minutes, then charging 0.03-0.1% of zirconium, 0.02-0.16% of silver, 0.02-0.155 of rare-earth elements, smelting 1-3 minutes and casting, subjecting the cast alloy to heat preservation 1-4 hours at 800-850 deg C, forming bar stock through processing, the forging deformation amount is 50-80%, loading the bar stock into heat treatment furnace, thermally insulating 30-60 minutes at 800-950 deg C, then carrying out quenching treatment, subjecting the quenched alloy to 30-80% deformation treatment, cold drawing the alloy, thermally insulating 1-8 hours at 440-520 deg C, carrying out 50-70% deformation treatment to the alloy undergone ageing treatment. The invention can achieve high-strength and high conductivity.