The invention discloses a low-smoke FDY (Fully Drawn Yarn) oiling agent and a preparation method thereof. The low-smoke FDY oiling agent comprises the following materials in percentage by weight: 50-60% of emulsifying agent, 10-30% of smoothing agent, 6-10% of antistatic agent, 1-3% of beam concentrating agent, 9-11% of moisture, and 0.1-0.2% of preservative. The low-smoke FFY oiling agent provided by the invention has such functions of lubricating fiber, concentrating beam, preventing static electricity and the like in a production process of FDY, has the characteristics of reducing broken yarns, broken filaments, reducing dyeing and the like in a pre-spinning process, and further has the characteristics of reducing broken yarns, broken filaments, static electricity and the like in a post-processing (weaving) process, and is an important auxiliary ingredient which is essential in the production process of chemical fiber.