The invention provides a magnesium-based heat-resistant damping alloy material and a method for preparing the same. In the material, stable bulky compounds are provided in a matrix, so that the heat resistance and the shock absorption properties of the alloy are both improved. The preparation method has the advantages of simple process, low production cost and the suitability for industrialized production. In the alloy material, the magnesium alloy is used as the matrix, the bulky compounds are uniformly distributed on the magnesium alloy matrix, and the alloy material comprises the followingchemical components in percentage by weight: 6 to 9 percent of Al, 5 to 8 percent of Sr, 2 to 8 percent of Si, 2 to 4 percent of Pb, 3 to 7 percent of Zn, 1 to 2 percent of Fe, 0.03 to 0.09 percent of C, 0.5 to 1.5 percent of Gd, 0.5 to 1.5 percent of Dy, 1.1 to 2.5 percent of Y, and the balance of Mg.