The invention relates to a terpolymer oil soluble viscosity reducer for thick oil exploration and transportation and a preparation method thereof. The terpolymer oil soluble viscosity reducer for thick oil exploration and transportation is characterized in that the viscosity reducer is prepared from methacrylate ester, N, N'- 2 (methacryloyloxyethyl) diamine, styrene, azobisisbutyronitrile and toluene, and the molar ratio of all the raw materials is as follows: methacrylate ester: N, N'- 2 (methacryloyloxyethyl) diamine: styrene is (4 to 5): (2 to 3): (2 to 4), the added amount of the azobisisbutyronitrile is 0.5 to 2 percent of the total mass of the methacrylate ester, the N, N'- 2 (methacryloyloxyethyl) diamine and the styrene, and toluene serves as the solvent; the methacrylate ester is prepared from acrylic acid, C16 to C22 higher alcohols, sulfoacid catalyst and phenolic inhibitor; and the N, N'- 2 (methacryloyloxyethyl) diamine is prepared from methyl acrylate and diamine. The oil soluble viscosity reducer has the advantages of good effect, strong universality, no pollution and relaxed use conditions, and can simultaneously meet the needs of thick oil exploration and transportation.