The invention discloses a graphene conduction oil additive and a preparation method thereof. The graphene conduction oil additive is prepared from the components of base solution conduction oil, graphene, a metal passivator, an antirust agent and antioxygen at a certain proportion and according to the processes of mechanical stirring, high speed stirring and ultrasonic dispersion. The graphene conduction oil additive can be directly added into conduction oil, and the defects of traditional conduction oil that gas or low-boiling-point substances such as micromolecular substances are produced by high temperature pyrolysis, and are polymerized to produce substances with higher molecular weight and even high-boiling-point substances such as coke, combustion is easily caused, and the like can be overcome. The graphene conduction oil additive can be used to effectively improve the heat conduction efficiency of the conduction oil, prevent the conduction oil from being partially over-heated during use, delay ageing and coking of the conduction oil, effectively improve conduction oil indexes such as flash point, pour point, kinematic viscosity and initial boiling point, prolong the service life of the conduction oil, and realize energy conservation and consumption reduction.