The invention discloses a low-smoke zero-halogen flame-retardant polyphenyl ether composition and a preparation method thereof. The low-smoke zero-halogen flame-retardant polyphenyl ether composition comprises the following components in percentage by weight: 30-80 percent of polyphenyl ether, 10-40 percent of polystyrene resin, 5-25 percent of fire retardant and 2-8 percent of smoke suppressant. By adopting an organic phosphate fire retardant and a smoke suppressant for flame retarding synergism, the invention has the advantages of less additive amount of the fire retardant and the smoke suppressant, high flame retarding efficiency and flowability, good processability, and the like, is widely applied to the fields, such as ships, aviation, buildings, and the like, which have higher requirements for rigidity of materials.