The invention provides a high-rare-earth-content high-intensity heat-resistance aluminum alloy conducting wire and a preparation method thereof. The conducting wire is prepared from the following elements in percentage by weight: 0.1 to 2 percent of Zr, 2 to 5 percent of La, 2 to 6 percent of Ce, 2 to 6 percent of Y, 0.05 to 0.20 percent of Fe, 0.05 to 0.10 percent of Si, smaller than or equal to0.10 percent of other impurity elements and the balance of aluminum. The invention also provides the preparation method of the conducting wire. The tensile intensity of the heat-resistance aluminum alloy conducting wire reaches 320 MPa; the conductivity can reach 60-percent IACS; the long-time operation temperature can reach 300 DEG C; the conducting wire can withstand the 1h heating checking operation at 280 DEG C; the intensity ascends instead of descending. After the 1h heating checking operation at 400 DEG C, the intensity residue rate reaches higher than 97 percent.