The invention discloses a belt pulley powder metallurgy formulation. The belt pulley powder metallurgy formulation is composed of the following ingredients (mass percentage): 0.3-0.7% of graphite, 1.5-2.5% of copper powder, 0.6-1.0% of zinc stearate, 0.1-0.3% of sulphur, 0.3-1.5% of nickel powder, 0.3-1.0% of molybdenum powder, and the rest is iron powder; the invention further discloses a process for preparing the belt pulley powder metallurgy formulation. The process comprises the following steps of mixing materials, pressing, sintering, cooling, shaping, removing oil, blasting sands, and blackening. In the formulation and the method, the formulation is reasonable, the belt pulley is proper in hardness, the process is simplified, the production efficiency is high and the production cost is low.