The invention discloses organic fertilizer produced from waste preserved vegetable peels as well as a preparation method of the organic fertilizer, and aims to provide organic fertilizer which can improve the immune function of plants, can promote growth of the plants and is non-toxic, odorless, safe, reliable, lasting in fertilizer efficiency and harmless to human bodies and the environment. The organic fertilizer comprises raw materials in parts by weight as follows: 15-20 parts of the waste preserved vegetable peels, 15-30 parts of soybean meal, 5-10 parts of cassava residues, 10-20 parts of kieselguhr, 5-10 parts of bentonite, 10-15 parts of rice hull ash, 10-20 parts of livestock and poultry manure, 10-15 parts of humic acid and 10-15 parts of a compound microorganism preparation. The organic fertilizer capable of improving soil is prepared from the waste preserved vegetable peels, waste is turned into wealth, spreading of pathogenic bacteria can be effectively blocked, fertilizer input can also be reduced, the soil is fertilized, the yield is high and stable, the yield and the income are increased, and the fertility of the soil where the fertilizer is applied is improved.