The invention discloses a Zr-Fe alloy for tritium storage and a preparation method thereof. The chemical formula of the alloy is Zr2-xTixFe1-y-zNiyCoz, wherein x, y and z represent the atomic ratios of Ti, Ni and Co replacing Zr and Fe correspondingly, x ranges from 0.01 to 0.05, y ranges from 0.01 to 0.05 and z ranges from 0.01 to 0.03. The preparation method of the Zr-Fe alloy comprises the following steps that (1) preparation is carried out according to the chemical formula, a vacuum non-consumable electric-arc furnace is adopted for carrying out turnover smelting 3-5 times, and a cast ingot is prepared; and (2) the smelted cast ingot is heated again into a smelted state, magnetic stirring is carried out for 2-5 min. The alloy is hydrogen storage alloy low in balance pressure, and has the beneficial effects that the room temperature balance pressure level is lower than 1 Pa, the hydrogen (tritium) adsorption and desorption rate is high, the cycle life is long, hydrogen induced disproportionation is resisted, and the hydrogen (tritium) storage capacity is large. In addition, the preparation method of the Zr-Fe alloy is easy to operate, easy to achieve and high in efficiency, andcompared with a common ZrCo alloy and ZrNi alloy, the cost is lower.