The invention discloses a low-smoke halogen-free cold-tolerant-type flame-retardant thermoplastic elastomer and a preparation method thereof. The thermoplastic elastomer is used for solving the problems that the existing flame-retardant thermoplastic elastomer contains halogen and antimony and is poor in cold tolerance. The thermoplastic elastomer is characterized by being prepared from powdery cis-butadiene rubber, polyethylene resin, a ethylene-maleic anhydride copolymer, powdery butadiene-acrylonitrile rubber, zinc oxide, stearic acid, paraffin oil, polyethylene wax, sulfur, dicumyl peroxide, an accelerator, an anti-aging agent, an antioxidant, antistatic carbon black, epoxy silicone resin, aramid slurry meal, dioctyl sebacate, tricresyl phosphate, a halogen-free flame retardant, a silane coupling agent and an antistatic agent. The thermoplastic elastomer has the advantages that under the premise of having good mechanical properties and processing property, thermoplastic elastomer can be used at the environment of -60 DEG C in a long term and excellent flame retardant property and environment friendliness are achieved and is a good material for manufacturing products such as cold-retardant flame-retardant conveyor belts, transmission belts, hoses, cables, automotive sealing products and rail damping products.