The invention discloses an environment-friendly cold-resistant polyvinyl chloride elastomer composition and a preparation method thereof. The preparation method comprises the following steps: mixing a polyvinyl chloride resin, dialkyl terephthalate, synthetic vegetable oil, polar rubber, nano activated calcium carbonate, a calcium zinc composite stabilizer, a lubricant, an antioxidant and a pigment in a kneader; after the temperature of the mixture reaches 90-100 DEG C, discharging, cooling, and carrying out extrusion granulation on the cooled mixture in a double screw extruder, wherein the Shore hardness of the elastomer composition at -5 DEG C is lower than 80. The elastomer composition has the advantages of excellent low-temperature toughness, high mechanical strength, high thermal aging resistance, environment friendliness, no toxicity, excellent comprehensive properties and the like, and is especially suitable for preparing escalator balance compensation chain sheaths, door / window and vehicle window seals, insulation sheaths of wires and cables and the like.