The invention provides an anti-flaming shrink package film and a preparation method thereof. The method comprises the following steps of: mixing rice hull fiber and cotton fiber with hydroxyapatite; putting into a crushing machine and crushing; screening with a 100-mesh sieve; removing big grains; adding low-density polyethylene, polyvinyl alcohol, polyethylene glycol terephthalate, nano-zinc oxide, nano-copper, alphadrate, dibutyl itaconate, phosphite ester, glycerol and dinonyl phthalate; adopting a high-speed mixing machine for mixing for 3-7 minutes at a rotating speed of 700-1000r/min; adding into a twin-screw extruder for extruding and pelleting, wherein the temperature in each area is at 240-260 DEG C and the rotating speed of the screw rod is 40-60r/min; adopting a film blowing machine for blowing a film, wherein the film blowing temperature is at 240-250 DEG C. The anti-flaming shrink package film provided by the invention has excellent mechanical property, excellent shrinkage performance, high contractility, difficulty in slacking, high light transmittance, excellent anti-flaming property and excellent anti-flaming effect.