The invention belongs to the technical field of the aluminum alloy material preparation, the nonferrous metal conductor processing forming and the cable manufacturing, and particularly relates to a rare earth aluminum alloy cable for a railway and a conductor preparation method. In the rare earth aluminum alloy cable, the Fe element content is 0.5-1 wt%, the Cu element content is 0.3-0.5 wt%, theB element content is 0.01-0.05 wt%, the Sr element content is 0.01-0.03 wt%, the rare earth element content is 0.01-0.05 wt%, the Si element content is less than 0.05 wt%, and the balance is Al, wherein the rare earth is the mixed rare earth formed by lanthanum, cerium, neodymium and yttrium. The conductor is prepared by using a horizontal continuous casting + continuous extrusion + multi-die drawing technology. Through continuously extruding and shear-deforming, refining tissues and crushing a thick intermetallic compound, the comprehensive property of the alloy is further improved. A novel aluminum alloy cable with good electrical property and corrosion resisting property is provided for the railway. The conductor preparation technology is simple, the investment is small, the cost is low, and the production efficiency is high. The method is suitable for the industrial large-scale batch production, and has the remarkable economic benefit.