The invention belongs to the field of high-temperature-resistant and anti-irradiation metal materials and particularly relates to nitride-enhanced ODS (Oxide Dispersion Strengthened) steel and a preparation method thereof. The nitride-enhanced ODS steel comprises the following alloy components in percent by weight: less than or equal to 0.03% of C, less than or equal to 0.5% of Si, 0.6-1.5% of Mn,8.0-15.0% of Cr, less than or equal to 1.5% of W, less than or equal to 1.5% of Mo, 1.0-1.5% of (W+Mo), 0.02-0.06% of Nb, 0.05-0.15% of Ta, 0.10-0.15% of (Nb+Ta), 0.15-0.30% of V, more than or equalto 0.05% and less than or equal to 0.5% of Y2O3, 0.02-0.08% of N, less than or equal to 0.05% of Co, less than or equal to 0.01% of Ni, less than 0.01% of Al, less than 0.005% of Ti, less than 0.01% of Cu, 0.010% of P, less than 0.005% of S and the balance of Fe. The nitride-enhanced ODS steel and the preparation method have the beneficial effects that by control of the carbon content to be below0.03%, the formation of easily-coarsened M23C6 carbide under the condition of high-temperature and long-time service is avoided, M is mainly Cr or Fe, and only by synergistic enhancement of nano-scalenitride and oxide with heat stability and dispersed distribution, excellent high-temperature heat stability of structures and excellent anti-irradiation property are obtained.