The invention provides magnetic recording paper and a preparation method thereof. The preparation method comprises the following steps: (1) mixing ferriferrous oxide, cobalt powder, aluminum potassium sulfate dodecahydrate and distilled water and stirring for 10-20 min; (2) adding eucalyptus nitens wood pulp and wheat straw pulp, and stirring at the rotating speed of 50-70 r/min for 40-60 min; (3) adding polyethyleneimine and stirring for 10-20 min; (4) adding guar gum, mannitol, lauramidopropyl betaine, sodium citrate, beta-cyclodextrin and polyvinyl alcohol, and continuously stirring for 5-10 min; and (5) preparing a paper sample on a papermaking machine, and drying at the temperature of 100-110 DEG C. The magnetic recording paper has high tightness and tear-resistance, and also has good magnetic property.