A pig back fat substitute is composed of, by weight, 100-200 parts of pigskin protein powder, 20-40 parts of sodium carboxymethylcellulose, 10-20 parts of hydroxypropyl methyl cellulose, 1-3 parts of TG enzyme, 500-1000 parts of water and 10-60 parts of vegetable oil. A processing method of the pig back fat substitute includes the following steps of firstly, evenly mixing pigskin protein powder, sodium carboxymethylcellulose, hydroxypropyl methyl cellulose and TG enzyme, adding water and vegetable oil to be evenly stirred, and then obtaining a mixture; secondly, putting the mixture in a water bath at a temperature of 40 DEG C to 50 DEG C to be heated for 0.5-1 h, then putting the mixture at a temperature of 0 DEG C to 4 DEG C to be stored for 4-8 h, and obtaining the pig back fat substitute. The content of protein of the pig back fat substitute reaches 10-20%, and the pig back fat substitute contains unsaturated fatty acid, is used for replacing pig back fat or other animal hard fat with cholesterol and can reduce the content of cholesterol and saturated fatty acid in meat products.