The invention discloses a terpolymer dispersing agent with high dispersion and stability, low preparation cost and environmental protection as well as a preparation process and applications thereof. The terpolymer dispersing agent is prepared through free radical copolymerization of acrylic acid, sodium styrene sulfonate, hydroxypropyl acrylate or 2-hydroxyethyl methacrylate, the number average relative molecular weight of the terpolymer is between 2000 and 40000, and the dispersing agent has advantages of high thermal stability, good water solubility, excellent adaptability to acid and alkali and good dispersion stability, and also has good dispersion effects to calcium carbonate, zinc oxide, barium sulfate, titanium dioxide and pesticide Atrazine water dispersible granules and fipronil water dispersible granule, and can be widely used in the pesticide, pigment, dyestuff, coal water slurry and other industries. In addition, the preparation process has the advantages of simple operation, short cycle, environmental protection and low cost, and is suitable for the industrial scale production.