The invention belongs to the field of crop fertilizer and particularly relates to compound fertilizer synergist modified by oxidized graphene and a preparation method of the compound fertilizer synergist. The compound fertilizer synergist is prepared from, by weight, 70-80 parts of forestry and agricultural residues, 10-20 parts of a modifying agent, 0.5-1 part of a catalyst, 1-5 parts of stabilizer, 5-10 parts of cyclodextrin and 0.3-0.5 part of the oxidized graphene. The preparation method includes the steps that plasma illumination is utilized to conduct bombardment on the surfaces of forestry and agricultural residues, hydroxide radicals, carbanyl groups, carboxyl and other functional groups containing oxygen are introduced into the surfaces of the forestry and agricultural residues, then polymerization with water-soluble polymer modifier occurs under the action of high-field-intensity ultrasound waves, stable nanometer gel particles of three-dimensional network structures are formed, after modification with the oxidized graphene and cyclodextrin is completed, high adsorption, complexing power and a water-retaining property are achieved, nutrient elements in soil can be subjected to complexing, losing of fertilizer nutrients is reduced, the water retention and fertilizer retention performance of soil is improved, and the utilization rate of compound fertilizer can be remarkably raised. The compound fertilizer synergist has the advantages of being environmentally friendly, free of pollution, capable of raising the utilization rate of fertilizer and improving soil environment and the like.