The invention relates to the technical field of cosmetics, and particularly discloses a velvet lipstick and a preparation method thereof. The lipstick is prepared from the following raw materials in parts by weight: 20-30 parts of grease, 15-20 parts of wax, 10-15 parts of ester, 1-5 parts of a film-forming agent, 1-3 parts of a coloring agent and 2-5 parts of a rice extract, wherein the film-forming agent is one or a composition of more of organic silicon resin, a silica gel mixture and silicon dioxide; and the rice extract is a composition of a rice germ extract and a rice extract. The preparation method of the velvet lipstick comprises the following steps: heating and grinding the grease and the ester, adding the film-forming agent, and continuing grinding to obtain a mixed phase A; stirring the wax after anaerobic heating, adding the coloring agent, conducting grinding and mixing, lowering the temperature to 60-70 DEG C, and adding the rice extract to obtain a mixed phase B; and mixing the mixed phase A and the mixed phase B at the temperature of 60-70 DEG C, carrying out oxygen-free heat preservation for 1 h, and naturally cooling the mixture to room temperature to obtain the lipstick. The lipstick disclosed by the invention can be used for decorating the lip skin of a human body and is excellent in texture.