The invention discloses an automobile exterior trimming special material prepared from a TPO skin reclaimed material and a preparation method thereof. Raw materials comprise: a TPO skin reclaimed material, copolymerized PP, a molecular weight regulator, a flexibilizer, a compatilizer, a weather-resistant agent, a filler, an antioxidant and a colorant. The preparation method comprises the followingsteps: mixing and stirring the TPO skin reclaimed material and the molecular weight regulator, adding the copolymerized PP, the flexibilizer, the weather-resistant agent, the compatilizer, the antioxidant, the filler and the colorant, mixing and stirring the components; and feeding the mixture into a double-screw extruder for perfomring extrusion, cooling, drying and granulation. The TPO skin regenerated material is creatively applied to production of special materials for automobile exterior decorations such as automobile fenders and wheel covers, so that the product can completely meet theworking condition performance requirements of the automobile exterior decorations such as the automobile fenders and the wheel covers, so that high-impact-resistance PP or PE materials are replaced, the problems of resource waste, environmental pollution and the like can be relieved, the production cost can be effectively reduced, and economic benefit is increased.