The invention relates to a lightweight plastic-wood composite sheet and a preparation method thereof. The preparation method comprises the following steps of: firstly stirring PVC particles and tribasic lead sulfate evenly in a stirred tank, and then adding wood flour, LDPE-g-GMA, hollow glass beads, chlorinated polyethylene, ethylene bisstearamide and hard fatty acid butyl ester to the tank, heating up and stirring evenly, cooling and taking out the mixture, and then stirring the mixture evenly with baking soda and citric acid at room temperature, extruding out and molding. The lightweight plastic-wood sheet has the advantages of convenient production and manufacture, high degree of mechanization in the production process, low production cost, low density, light weight, easy installation and maintenance, less use of timber and plastic, turning waste into treasure, being recyclable and not destroyed by insects, no aging and discoloration as well as cracking, no buckling deformation and high impact strength, with the function of adsorbing gas. The lightweight plastic-wood sheet can be applied to a plurality of occasions such as office buildings, hotels and home offices, can be made into products such as photo frames, picture frames, foot lines, and hoisting and fastening boards, and can also be used as suspended beams, pergolas, and the like.