The invention provides a light emitting diode (LED) which comprises LED crystal grains and a packaging body. The packaging body comprises a first packaging body and a micron second packaging body grains, wherein the first packaging body is coated outside the LED crystal grains; the micron second packaging body grains are distributed in the first packaging body; and nano particles with scattering function are distributed in the second packaging body grains. Compared with the prior art, the nano-particles in the packaging body of the LED have the scattering function. When light meets the scattering particles, the light generates multiple scattering so that the light is spread to a wider angle range to enlarge an emergence angle of the LED. The invention also discloses a preparation method of the LED.