The invention relates to dermal-fiber regenerated leather and a preparation method thereof. The method includes a step of subjecting fiber of dermal rawhide to complete oxidation and decomposition, smashing, grinding while adding water and pulping; a step of layering the pulped dermal fiber in clear water and stirring so as to layer fiber slurry with different sizes; a step of paving and coiling the layered fiber slurry; a step of repeatedly rolling the coiled slurry in a compression roller; and a step of subjecting compressed sheets obtained to adhesion, dehydration, moulding and drying, filling with edible gelatin, and performing surface layer processing. The beneficial effects of the dermal-fiber regenerated leather and the preparation method thereof are that: rawhide pieces and cutting oddments are preprocesses and subjected to oxidation and decomposition of synthetic materials, defibrination and pulping, layering, filtration, paving and coiling, heating, rolling, adhesion, dehydration, moulding, drying and surface processing to obtain the dermal-fiber regenerated leather; the dermal fiber obtained after the defibrination can be mixed with other animal and plant derivative protein raw materials, and the like; the nutrition quality of the product is largely improved, and the utilization rate of the rawhide is increased.