The invention relates to a sunshine fabric with high oxygen index and a preparation method thereof, wherein the sunshine fabric comprises the following raw materials in parts by weight: 90-100 parts of PVC resin, 10-15 parts of chlorinated polyvinyl chloride, 5-25 parts of a phthalate plasticizer, 5-20 parts of a phosphate plasticizer, 7-10 parts of antimony trioxide, 10-15 parts of chlorinated paraffin, 0.5-7 parts of zinc hydroxystannate, 7-10 parts of decabromodiphenylethane, 5-8 parts of magnesium hydroxide, 0.5-1.5 parts of a composite ultraviolet absorber, 0.3-0.5 part of a lubricant, 1-1.5 parts of a processing aid, 0.3-0.4 part of an antibacterial agent, 3-5 parts of a heat stabilizer, and 1-10 parts of rutile titanium dioxide. The preparation method comprises the steps: blending the raw materials physically, melting by an extruder, coating PET protofilaments to obtain coated yarns, beaming, weaving, and carrying out heat setting to obtain the product. The prepared fabric has good properties of high flame retardancy, light resistance and thermal aging, and has good application prospects and research value.