The invention relates to an extruded and foamed thermoplastic polyurethane elastomer particle and a preparation method thereof. The particle contains the following components in percentage by mass: (A) 65%-90% of a thermoplastic polyurethane elastomer, (B) 2%-30% of a thermoplastic resin polymer, (C) 0.5%-15% of a compatilizer and (D) 0.1%-5% of a foaming nucleating agent. The preparation method of a TPU formed particle comprises the following steps: uniformly mixing the thermoplastic polyurethane elastomer, the thermoplastic resin polymer, the compatilizer and the foaming nucleating agent, putting the mixture into melt extrusion equipment, and carrying out granulation, so as to obtain a blending alloy particle; and putting the blending alloy particle into foaming extrusion equipment, carrying out melting plastification so as to obtain a melt, dissolving supercritical carbon dioxide into the melt, foaming by virtue of a mouth mold, and carrying out underwater dicing, so as to obtain the formed particle. The prepared thermoplastic polyurethane foamed particle is stable in size and basically does not shrink, the surface is bright and plumy, and the diameters of foamed holes are uniform.