During drilling fluid preparation, ultrasonic oscillations were introduced into water-bentonite suspension incorporating sulfonated wood coal (SMC) by a specially designed device. The influences of ultrasonic oscillations on fluid loss and rheological performances of the drilling fluid as well as mechanism of ultrasonic action were investigated. The experimental results showed that the filtrate volume decreased with the increase of ultrasonic time till a certain extent and then leveled off. In the presence of ultrasound, shorter time of 15 min and mild intensity of 250 W could lead to a satisfactory result in fluid loss properties, including the reasonable filtrate volume and thin and compact filter cakes. With increasing ultrasonic intensity, the fluid loss properties changed relatively little but various rheological data of the drilling fluids always increased. Adsorption tests through total organic carbon, infrared spectrum and thermogravimetic analyses as well as clay particle size analysis confirmed that as compared with the conventional agitation, ultrasound-assisted mud preparation could not only increase adsorbed amount of SMC on bentonite but also decrease average clay particle diameter attributed to acoustic cavitation. A plausible mechanism based on sonochemical thermodynamics is proposed to explain the improvement of the colloidal structure and performances of drilling fluid.