A baicalin magnesium compound and methods for preparing and extracting the same. The method for preparing the baicalin magnesium compound includes steps of preparation of a baicalin suspension, preparation of a magnesium ion-containing suspension, reaction and drying. The method for extracting the baicalin magnesium compound includes steps of pretreatment of macroporous resin, extraction, adsorption and elution, concentration and drying and purification. The methods restores the baicalin to the original form as found in radix scutellariae, and the baicalin magnesium compound may be used as a substitute for the baicalin in pharmaceutical applications. As compared to the baicalin, the baicalin magnesium has a greatly increased solubility, faster adsorption rate and higher oral bioavailability. The baicalin magnesium compound may also be easily formulated as a water-soluble injection or a powder injection. Pharmacological tests show that the baicalin magnesium compound is more pharmacologically active than the baicalin.