The invention belongs to the field of cosmetics, and provides agilawood cream shampoo and a preparation method thereof. The agilawood cream shampoo contains hair conditioner and thickner, wherein the hair conditioner comprises agilawood oil extract and pearl extract. The agilawood oil extract accounts for 0.01-3.00% of the agilawood cream shampoo, and the pearl extract for 0.50-5.00%. The agilawood cream shampoo is nature, mild, less irritable, and foamy, can be either used for repairing dry and damaged hair or for daily care after long-term use, and has better softening and conditioning effect for dry and damaged hair.