The invention discloses a lightweight wood-plastic composite fiberboard and a preparation method thereof. The lightweight wood-plastic composite fiberboard is composed of hot-ground wooden fiber, high-density polyethylene, a foaming agent and other additives. The prepared composite fiberboard has wooden fiber content of 60 to 70%, average density of 800 to 900 kg/m<3>, an average pore size of 50 [mu]m and porosity of 20 to 30%. The preparation method comprises the following steps: subjecting the wooden fiber to alkaline activation and isocyanate grafting; and then subjecting the modified wooden fiber, polyethylene, the foaming agent and other auxiliary agents to high-speed mixing, granulation, mould pressing, foaming and rapid cooling. The lightweight wood-plastic composite fiberboard has same advantages as a fiberboard and a wood-plastic composite and has the advantages of good dimensional stability, high strength-to-weight ratio, good shock resistance, anticorrosion performance, pest damage resistance, sound insulation performance, heat insulation performance, etc. The lightweight wood-plastic composite fiberboard has a wide application scope and is applicable to fields like decoration, buildings, floors, municipal projects, packaging and automotive interior decorative parts.