The invention belongs to the technical field of functional master batch preparation, and discloses a laser etching master batch for light color identification, a preparation method thereof and application. The master batch comprises, by weight, 65-66 parts of carrier resin, 0.01-0.5 part of light absorption color powder, 0.01-0.5 part of light reflection powder, 0.7-6 parts of foaming agents, 0.05-1.5 parts of carbon black, 5-20 parts of whitening fillers and 0.01-4 parts of processed modified oil. As the carrier resin in the laser etching master batch can be selected according to applied matrix resin, the carrier resin is fine in compatibility and uniform in dispersion in the matrix resin and can function in carving and foaming under the action of laser when less carrier resin is added, the carrier resin is applicable to different matrix resin, marking effects are uniform and clear, resin contrast ratio is high, the mechanical performance of original resin materials cannot be affected, and the laser etching master batch can be applied to the field of laser marking modified plastics and is widely applicable to various universal plastics and engineering plastics.