The invention discloses a method of directly preparing paraxylene from synthetic gas and aromatic hydrocarbon. The method comprises the steps of allowing a raw material containing the synthetic gas and aromatic hydrocarbon except paraxylene to be contacted with a catalyst in a reaction area under a reaction condition sufficient to convert at least part of the raw material to form a reaction effluent containing paraxylene, and separating paraxylene from the reaction effluent, wherein the catalyst comprises an inert carrier confinement high dispersion metal oxide material, an acidic molecular sieve, and at least one of optional graphite powder and a dispersing agent; in the inert carrier confinement high dispersion metal oxide material, an inert carrier is at least one of silicon oxide and aluminum oxide; a content of metal oxide calculated as per a metal is less than or equal to 10wt% based on the weight of the inert carrier confinement high dispersion metal oxide material; and the acidic molecular sieve is selected from a modified acidic ZSM-5 molecular sieve, a modified acidic ZSM-11 molecular sieve and a mixture of the modified acidic ZSM-5 molecular sieve and the modified acidicZSM-11 molecular sieve.