The invention provides a production technology of water-soluble capsaicin. The production technology comprises the following steps: performing countercurrent leaching on hot pepper peel by using a leaching solution, adsorbing capsaicin from a solution obtained in the upper layer by using macroporous resin, circulating the adsorbed solution back to countercurrent leaching of the hot pepper peel, then adsorbing, circulating in such a manner, eluting capsaicin adsorbed in the macroporous resin by using ethanol, and concentrating by evaporation to obtain a water-soluble capsaicin solution; dryingin a vacuum, crushing and sieving to obtain a water-soluble capsaicin powder product; by a dry granulating technology, producing a water-soluble capsaicin granule product, wherein the leaching solution is a food-grade alkaline solution and is a monovalent alkali solution and the pH of the leaching solution is 9-14. By a dynamic countercurrent leaching, adsorbing and separating continuous cyclic integrated technology, the prepared water-soluble capsaicin product is light yellow in color, good in water solubility, rich and pure in pepper fragrance, unique in flavor, spicy and refreshing in mouthfeel, free of organic solvent residue, safe and reliable, and can be safely applied to the field of food.