The invention discloses processed cheese and a preparation method thereof. The processed cheese is prepared from the following raw materials in parts by mass: 15-35 parts of natural cheese, 5-13 parts of fat products, 0.3-2 parts of a stabilizing agent, 0.3-1.8 parts of emulsifying salt and 0.5-5 parts of flavor presenting substances. According to the processed cheese disclosed by the invention, all the raw materials are reasonably compounded, so that the processed cheese has good mouth feel and rich flavor characteristics.