The invention relates to an edible fungus cultivating material prepared by utilizing waste Chinese medicinal residues and a preparation method thereof in the technical field of plant cultivation. The edible fungus cultivating material comprises the following components in part by weight: 50 to 70 parts of Chinese medicinal residue, 10 to 20 parts of cotton seed hull, 5 to 10 parts of corn flour, 2 to 5 parts of calcium oxide, 5 to 10 parts of nitrogenous fertilizer, 2 to 4 parts of monopotassium phosphate, 0.1 to 0.2 part of miconazole, 0.4 to 0.8 part of microelements and 0.2 to 0.4 part of molysite. The method solves the problem of environmental pollution of the waste Chinese medicinal residue, relieves the pollution treatment burden of enterprises, solves the problems of shortage and price rise of the edible fungus cultivating material, saves the production cost and produces high-quality functional edible fungus products.