The invention provides an environment-friendly PVC (Polyvinyl Chloride) foaming ceiling panel and a preparation method thereof. The environment-friendly PVC foaming ceiling panel comprises the following components in parts by weight: 90-110 parts of PVC resin, 5-10 parts of polylactic acid, 7-12 parts of polycaprolactone, 10-20 parts of polyester fiber, 50-70 parts of barium sulfate, 3-7 parts of plasticizer, 5-11 parts of stabilizer, 1.7-5 parts of titanium dioxide, 0.6-2 parts of PE (Poly Ethylene) wax, 2-5.5 of processing modifier, 1.4-3.2 parts of anti-impact modifier, 0.7-1.5 parts of composite foaming agent and 20-30 parts of sepiolite. The environment-friendly PVC foaming ceiling panel provided by the invention has the characteristics of environmental friendliness, good weather fastness, high fire resistance, strong scratch resistance, sound insulation, thermal insulation, dust prevention, noise absorption, insect prevention and light reflection and is very suitable for serving as an indoor ceiling.