Production of water polyurethane dye for paint, fabric, artificial leather and leather is carried out by using grafting reacting process, dye parent containing active hydrogen reacting with isocyanate, connecting dye parent with polyurethane molecular chain, expanding chain, cross linking, side hanging active group, inducing hydrophilic agent, inducing cross-linking point, active group and hydrophilic group on polyurethane chain, neutralizing, emulsifying, precipitating, and self-curing water polyurethane dye. It achieves low cost, bright color, no pollution, and good dye firmness.