The invention relates to an anti-basic nitrogen olefin reduction cracking catalyst and a preparation method thereof. The catalyst comprises a cracking activity component, a mesoporous silicon-aluminum material, an adhesive and clay, wherein the cracking activity component comprises a first Y type molecular sieve and a second Y type molecular sieve, rare earth content in the first Y type molecular sieve is 8-23 wt% (calculated as rare earth oxide), iron content in the first Y type molecular sieve is 0.1-3.0 wt% (calculated as Fe2O3), copper content in the first Y type molecular sieve is 0-3.0 wt% (calculated as CuO), phosphorus content in the first Y type molecular sieve is 0-2.0 wt% (calculated as P2O5), sodium oxide content in the first Y type molecular sieve is 0.1-2.5 wt%, and the second Y type molecular sieve is a phosphorus and rare earth modified molecular sieve. The catalyst preparation method comprises: preparing a slurry comprising a cracking activity component, a mesoporous silicon-aluminum material, an adhesive and clay, and carrying out spray drying, washing and drying. With application of the catalyst in catalytic cracking of high basic nitrogen content hydrocarbon oil, high conversion rate and low gasoline olefin content are provided.