The invention discloses color attapulgite oil sludge and a production method thereof. The technical scheme of the invention is characterized in that the color attapulgite oil sludge is prepared from high-viscosity attapulgite clayey silt, anatase titanium dioxide, castor oil, liquid paraffin, carminum aluminum lake, lemon yellow aluminum lake, brilliant blue aluminum lake and a citric acid water solution. The production method comprises the following steps of: adding the citric acid water solution into a powdery mixture for wetting; adding the castor oil into the wet powdery mixture for stirring to form a semi-finished product of the color attapulgite oil sludge; and then slowly adding the liquid paraffin into the semi-finished product of the color attapulgite oil sludge. The color attapulgite oil sludge has the characteristics of good flexibility and plasticity, high viscosity, bright color, strong water-retaining property, small contractibility rate, no deformation, no crack generation, no corrosion and no greasy feeling. By adjusting the weight percentage of ingredients, color attapulgite oil sludge of different colors can be produced. The color attapulgite carved oil sludge is suitable for producing materials of arts and crafts and making models.