The invention discloses shredded tobacco with cool and gentle taste and a preparation method thereof. The preparation method includes: mixing peppermint leaf, loquat leaf and basil leaf, adding deionized water, preparing extract by means of heating and boiling so that volatile oils in the peppermint leaf, loquat leaf and basil leaf are transferred to the extract, with cool taste imparted to the extract; concentrating the extract and tobacco leaves to obtain tobacco extract, and adding a natural essence, acetate fiber, modified starch and propylene glycol monomethyl ether to shape the tobacco leaf and tobacco extract to obtain shredded tobacco. The surface of the shredded tobacco contains the volatile oils in the extract, so that the shredded tobacco has cool and gentle taste. The shreddedtobacco prepared herein has unique style, fill value of cigarettes is effectively improved, and cigarette smoking quality is improved.