The invention relates to an aluminum alloy cable for railways and a preparation method thereof, and belongs to the technical field of preparation of aluminum alloy materials, processing formation of nonferrous metal conductors and manufacturing of cables. The aluminum alloy cable is mainly prepared from aluminum, iron, copper, scandium, strontium, boron and inevitable impurity elements. A conductor is prepared by adopting continuous casting and continuous rolling as well as continuous multi-die drawing technologies, aluminum ingots, of which the purity is not less than 99.9 percent, is molten;firstly, an Al-B intermediate alloy is added into a melt mass, and primary refinement is carried out; the intermediate alloys such as iron, copper, scandium and strontium are added, the alloy elements are completely molten, stirred, subjected to secondary refinement and continuous casting and continuous rolling to be made into aluminum alloy rods and bars; the aluminum alloy rods and bars are made into wire rods by adopting the multi-die drawing technology; annealing processing is carried out, and the wire rods are made into the cable. The conductivity of the aluminum alloy cable conductor ismore than 61.2 percent IACS, and the tensile strength is more than 130MPa. According to the aluminum alloy cable for the railways and the preparation method thereof disclosed by the invention, a preparation process is simple, continuous and automatic production are easily realized, the production efficiency is high, the cost is low, and the aluminum alloy cable is suitable for industrial large-scale batch production and has the prominent economic benefit.