The invention discloses a preparation method of protein-modified phytosterol liposome powder and solves the problems that the water-solubility of phytosterol is poor and the blood fat reducing efficacy of the phytosterol is to be further improved. The method comprises the following steps: adding phytosterol and lecithin to absolute ethanol, performing stirring and dissolving at room temperature toobtain an organic phase; dissolving soybean protein isolate in water to obtain a water phase, slowly injecting the organic phase into the water phase under the condition of high-speed dispersion andperforming high-speed dispersion and uniform mixing, performing high-pressure homogenization and rotary evaporation to remove ethanol and then performing drying to obtain the protein-modified phytosterol liposome powder. The preparation method has simple process and less time consumption, the selected raw materials are safe and environmentally-friendly, the obtained liposome has good stability andhigh embedding rate and obviously improves the water-solubility of the phytosterol, and the liposome has good redissolution property and high solubility after being dried, can be stored for a long term and can be extensively applied to food and medicines for lowering the occurrence of hyperlipemia.