The invention relates to a titaniferous red mud compound binder and a preparation method thereof. The titaniferous red mud compound binder is prepared by selecting, drying, crushing and uniformly mixing waste red mud of aluminium manufactures and fine ash of converters of iron and steel plants according to a ratio of (65%-95%):(5%-35%). The prepared titaniferous red mud compound binder is mainly used for granulating titanium and iron-containing concentrate, has the characteristics of good binding effect, low price, high iron and titanium contents and the like, and can partially or completely be used for substituting for conventional organic binders and inorganic binders to produce titanium and iron-containing concentrate pellets. Compared with the organic binder which is used for completely producing the titanium and iron-containing concentrate pellets, the compound binder is greatly lowered in production cost, and iron and titanium elements in the red mud and fine ash of the converters can be effectively recycled. Compared with the inorganic binder which is used in the whole process, the compound binder is improved in pellet grade.