The invention discloses environment-friendly steel pipe expanding extreme-pressure antirust emulsified oil as well as a preparation method and an application thereof. The emulsified oil is prepared from a composite extreme-pressure anti-wear agent, a composite antirust lubricating agent, a triethanolamine oleate sebacate complex agent, a triisopropanolamine maleate complex agent, three emulsifying agents, benzotriazole, castor oil triethanolamine sodium soap, 2,6-butylated hydroxytoluene, a sterilizing preservative, a water-based organic silicon efficient defoaming agent and de-ionized water. The environment-friendly steel pipe expanding extreme-pressure antirust emulsified oil has good extreme-pressure wear resistance, proper oil viscosity, good film forming property, good cooling function, good antirust performance, good emulsifying performance and good storage stability, and meets the environment-friendly requirements. In addition, the environment-friendly steel pipe expanding extreme-pressure antirust emulsified oil does not contain substances harmful to a human body and an environment, cannot be burnt, is free of extraneous odor and is safe and reliable to use; a working solution can be continuously recycled for more than one year without affect5333ing physical and chemical properties, cannot go bad and generate smell, and is excellent in microbial breeding resistance and chemical stability.