The invention provides a microcrystalline soft magnetic powder material with high saturation magnetization. The material has high magnetic conductivity, is made of common raw materials and has low manufacturing cost. The invention also provides a preparation method for the microcrystalline soft magnetic powder material. The method has simple process and is suitable for industrialized mass production. The microcrystalline soft magnetic powder material comprises the following components by weight: 4 to 7 percent of Al, 7 to 12 percent of Si, 0.05 to 0.2 percent of Cu, 0.1 to 0.5 percent of Zr, 0.5 to 2.5 percent of B, 0.05 to 0.1 percent of Pr, 0.05 to 0.1 percent of La, 0.01 to 0.05 percent of P and the balance of Fe.