The invention discloses a tracking-resistant polyethylene sheath material for a power wire and a preparation method thereof. The tracking-resistant polyethylene sheath material for the power wire is prepared from the following substances in parts by weight: 50-70 parts of high-density polyethylene, 30-40 parts of linear low-density polyethylene, 15-25 parts of ethylene-propylene-diene monomer, 3-6 parts of polytrifluoropropyl methylsiloxane, 10-15 parts of nano wollastonite, 20-25 parts of sediment white carbon black, 5-10 parts of nano-montmorillonite, 4-6 parts of ferrocene, 10-15 parts of magnesium hydroxide, 8-12 parts of methyl phenyl silicone oil, 2-3 parts of dibutyltin dilaurate, 3-5 parts of phosphoguanidine and 5-10 parts of borax. The sheath material is excellent in tracking resistance, so that the electric erosion phenomenon on the surface of the power wire in extra-high voltage can be solved; meanwhile, the sheath material is good in physical and mechanical properties, electrical insulation property, environmental stress crack resistance, ageing resistance and heat resistance, durable in use, long-term in operation in outdoor severe environment without failure, good in flame retardant effect, low in smoke during combusting without harmful gas release, free of environmental pollution, safe and environment-friendly.