The present application discloses a display panel and a preparation method thereof. The display panel includes a base substrate provided with a circuit area and a light-emitting area; a driving circuit located in the circuit area of the base substrate; an organic insulating layer covering the light-emitting area of the base substrate; a light-emitting element embedded in the organic insulating layer, where an overlap area between the orthographic projection of the light-emitting element on the base substrate and the orthographic projection of the driving circuit on the base substrate is 0; and a first lapping electrode located on the side, facing away from the base substrate, of the light-emitting element, where the light-emitting element is electrically connected to the driving circuit through the first lapping electrode.