The invention relates to a medicine coated balloon and a preparation method thereof. The coating is prepared from the following raw materials in parts by weight: 5-9 parts of a medicine, 1-5 parts of excipient and 1-15 parts of a solvent, wherein the medicine is at least one of taxanes and macrolides; the excipient is at least one of iopromide, polyvinylpyrrolidone, polysorbate and polyethylene glycol; and the solvent is at least one of water, methanol, ethanol, acetone, isopropanol, acetonitrile, ethyl acetate and methyl formate. According to the method, by optimizing the composition of coating raw materials, the proportion of raw materials and the process parameter in the coating preparation method, the coating cannot be easily separated before reaching the target site and can quickly release the medicine when reaching the target site, the target tissue can be promoted to absorb the medicine in the coating, the medicine duration in the target tissue can be improved, and the vessel restenosis rate after interventional therapy can be reduced.