The invention discloses a self-lubricating grinding tool comprising a grinding material, a binding agent and a cyclodextrin inclusion compound including a lubricant and also discloses a preparation method of the self-lubricating grinding tool. In a technical scheme, a microencapsulation which is made of resin materials and wraps the lubricant in the prior art is replaced with the cyclodextrin inclusion compound including lubricant molecules, can not only meet the curing requirements of the binding agent for concreting the grinding tool because a cyclodextrin inclusion compound monomer has a nano-grade particle diameter, and agglomerated particles of the cyclodextrin inclusion compound can exist in a submicron grade way by being crushed in an ultramicro way and also resist the curing temperature of the resin binding agent, but also ensures the sustained and effective release of the lubricant in a machining area during grinding because the particle diameter of the cyclodextrin inclusion compound can be adapted to the abrasion loss of the self-lubricating grinding tool, thereby enhancing the grinding ratio of the grinding tool and obtaining machining parts with high surface quality.