The invention provides a multipurpose environment-friendly cleaning paste and a preparation method thereof. The multipurpose environment-friendly cleaning paste comprises, by weight, 5-15% of stearic acid, 4-10% of palm oil, 4-10% of coconut oil, 0.8-2% of sodium hydroxide, 0.1-0.5% of potassium hydroxide, 0.2-0.8% of soda ash, 0.8-2% of peregal O, 0.8-2% of tween-20, 0.8-2% of tween-80, 5-15% of carnauba wax, 15-20% of water-soluble silicone oil, 8-15% of OP-10, 0.2-0.8% of preservative, 0.1-0.5% of essence and 20-45% of purified water. The multipurpose environment-friendly cleaning paste has the unique advantages of being green, environment-friendly, free of corrosion and foreign smell and strong in detergency, sterilizing, polishing, waxing and saving water and time. Besides, the multipurpose environment-friendly cleaning paste removes dust, leaves no trace and is long in duration time, simple to manufacture, practical and simple and convenient to operate and use.