The invention discloses a catalyst for low quality heavy oil or residue suspended bed hydrocracking and preparation method belongs to oil process technology area. The catalyst is a sulfurization form transition metal nm particle that existing in the reversed phase micelle colloidal solution, the disperse medium of reversed phase micelle colloidal solution is organic phase, the disperse phase is a water phase parceled by surface activity, sulfurization form transition metal nm particle steady consist in the water phase. The transition metal active ingredient in disperse phase elect as Cu,Mn,Fe,Co,Ni,Cr,Mo,W,Zn,Sn,Pb elementary sulfurization form particle and so on, the grain size between 1nm-1000um. This catalyst can uniformly dispersed in the low quality heavy oil,residue, and under the certain reaction temperature and hydrogen aura, the low quality heavy oil or residue containing catalyst through suspended bed hydrocracking translated into light oil. On the premise of reducing catalyst enter quantity, the invention effectively controlled the coking products in heavy oil or residue suspended bed hydrocracking process, improved the yield of light oil.