The invention discloses a low-free high-compatibility toluene diisocyanate trimer curing agent and a preparation method thereof. The preparation method comprises the following steps: under nitrogen protection, putting a toluene diisocyanate monomer, a solvent and an antioxidant into a reaction vessel; controlling the reaction temperature to be 10-50 DEG C at an earlier stage; adding a catalyst in batches when NCO% is 12-14wt% and 10-11wt% and reaction is started; when NCO is 9.3-10wt%, adding the residual catalyst and controlling the temperature to be 50-100 DEG C; when NCO% is 8.0-9.3wt%, adding a polymerization inhibitor, reacting for 0.5-1 h, adding a component A, reacting for 2-4 h, adding a component B, reacting for 1-2 h, stopping reaction, cooling to room temperature and discharging materials so as to obtain the toluene diisocyanate trimer curing agent with free TDI less than 0.5%, xylene tolerance larger than 3, light color, quick drying and stable performance finally.