The invention discloses a quasicrystal particle reinforced magnesium matrix composite material and a preparation method thereof. The composite material matrix is industrial pure magnesium; the reinforced particle is Mg-Zn-Gd quasicrystal particle, the size of the quasicrystal particle is of 20-100um, and the weight percentage of the quasicrystal particle is of 5-30 percent. The preparation methodis as follows: by adopting the repeated plastic deformation technology processing procedure, the proportion of the quasicrystal particles is accurately controlled according to different purposes of the magnesium matrix material, so as to achieve the optimal combination of the intensity and elongation and lead the prepared composite material to meet different needs.