A TPE flame-retardant extruded wire sheath material comprises, by mass, 15–40 parts of a cyclic block copolymer (CBC), 5–25 parts of a polyolefin resin, 15–40 parts of a lubricant, 40–50 parts of a flame retardant, 0.1–5 parts of an antioxidant, 0.1–2 parts of an anti-aging agent, and 0.1–5 parts of a processing aid. The method involves mixing the CBC with the lubricant, polyolefin resin, and flame retardant, then extruding and granulating the mixture to form the sheath material. This approach ensures uniform oil distribution and improved compatibility with polyolefin resins, thereby enhancing overall performance and reducing oil precipitation and yellowing