The invention discloses a polyvinyl chloride composition and a transparent pipe thereof. The polyvinyl chloride composition consists of the following components in part by weight: 100 parts of PVC resin, 1.0 to 5.0 parts of heat stabilizer, 0.2 to 2 parts of lubricating additive, 1 to 3 parts of processing modification aid, 2 to 5 parts of impact modifier, 0.01 to 0.08 part of decolorizing agent, 0.2 to 0.6 part of age resister and 0 to 10 parts of plasticizer. The polyvinyl chloride composition is subjected to high-speed hot mixing and low-speed cold mixing, and then is extruded to prepare the polyvinyl chloride transparent pipe; and the pipe is homogenous and transparent, has smooth inner wall, is not easy to scale, can be sleeved outside a pipeline for delivering important or dangerous chemicals, has monitoring and protecting functions, has good ageing resistance, and can be used for outdoor occasions. The preparation method for the polyvinyl chloride transparent pipe is simple, convenient and quick, does not require special tools and professional staff, and is favorable for large-scale industrial production.