The invention discloses a Liaoyuan Qili ultrafine powder and a preparation method thereof. The Liaoyuan Qili ultrafine powder with the grain size that D90 is less than or equal to 12 Mu m can be smoothly made by using the processing steps of drying in low temperature, adequately mixing, coarse crushing, ultrafine crushing and so on. The effective components can be absorbed by human body rapidly. High efficacy can be obtained with small dosage. The power has the characteristics of rapid efficacy and high efficiency. Furthermore, most of eggs, bacteria and viruses are all killed in the process of ultrafine crushing, which has higher hygiene quality than traditional power, and is much more favorable for controlling quality and prolonging shelf life. Additionally, because the effective dosageof the Liaoyuan Qili ultrafine powder is reduced after being processed by ultrafine crushing, the medicine with the same effect can be made by consuming much less raw materials, namely the raw materials consumption can be reduced.