The invention provides pickled chilli essence paste and a preparation method thereof. The pickled chilli essence paste is characterized by comprising the following raw materials in part by weight: 700 parts of pickled upturned chili, 50 parts of pickled gingers, 180 parts of maltodextrin, 80 parts of pickled chilli water, 35 parts of glucose, 4 parts of yeast extract, 100 parts of sodium glutamate, 5 parts of vegetable hydrated protein, 2 parts of vitamin E, 2 parts of D-sodium erythorbate, 5 parts of Disodium 5'-ribonucleotide, 1 part of potassium sorbate, 8 parts of lactic acid, 0.5 part of pectinase, 0.1 part of flavour enzyme, 0.3 part of cellulase, and 0.3 to 0.5 part of hemicellulase. Except for Yunnan pickled upturned chili, according to the balance principle, the pickled chilli essence paste also adopts a scientific collocation of raw auxiliary materials of salt, a freshener, specific Yunnan natural plant spices, so that not only can taste comfort of the product be effectively improved and richer taste is given to the product, but also a dryness-heat feeling brought by pickled chilli can be relieved, and the product is spicy, but not dry, is sour, but not acerb, and is delicious, but not oily.