The invention relates to paper back coating emulsion and a preparation method and application thereof. The paper back coating emulsion is mainly prepared from, by mass, 10-14 parts of water, 12-16 parts of acrylic emulsion, 1-4 parts of wax emulsion, 1-4 parts of gamma-polyglutamic acid, 0.5-1.5 parts of sodium alginate, 0.5-1 part of calcium chloride, 0.5-2 parts of ketone-removing additive and 0.03-0.2 part of auxiliary agent. The paper back coating emulsion is used for preparing a transfer paper back coating, the water retention capacity and water absorption can be improved, the moisture ofbase paper is prevented from permeating out, and the moisture condensed on the surface in the environment is absorbed, therefore the problem of mutual adhesion of transfer paper during overlapping issolved, so that the transfer paper is more easily separated during subsequent processing and use, the damage and waste caused by improper separation are avoided, the production efficiency is effectively improved, the production cost is reduced, and the market application prospect is broad.