The invention provides environment-friendly synthetic ester air compressor oil. The oil is prepared from modified vegetable oil, synthetic ester, a high-temperature antioxidant, an antirust agent, anantiwear agent, a pour point reducer and an antifoaming agent, wherein the mass percent of the modified vegetable oil in the air compressor oil is 45-50%, the mass percent of the synthetic ester in the air compressor oil is 45-50%, the mass percent of the high-temperature antioxidant in the air compressor oil is 1-2%, the mass percent of the antirust agent in the air compressor oil is 1-2%, the mass percent of the antiwear agent in the air compressor oil is 1-2%, the mass percent of the pour point reducer in the air compressor oil is 1-2%, and the anti-foaming agent is 50-100 ppm. The invention further provides a preparation method of the air compressor oil. According to the environment-friendly synthetic ester air compressor oil, the open flash point can be up to 300-350 DEG C, the pour point is minus 45 DEG C or lower, the service life can be up to 10,000 h or more, and the rotary oxygen bomb time is 3,000 min or more.