The invention relates to an environmentally-friendly recycled paper and a preparation method thereof, which belong to the technical field of paper making. The method uses waste paper as a raw materialto synthesize two hydrophilic group surfactants, the surface tension is reduced, and steps of penetration, emulsification and dispersion are carried out on an ink, thereby removing, the whiteness ofthe waste paper is improved, and the recycled paper can be re-printed and reused; an active methylene hyperbranched waste paper formaldehyde-removal additive is prepared by taking ethyl acetoacetate and hydroxyl terminated hyperbranched polyester as raw materials, so that the formaldehyde can be captured and removed; dicyandiamide and hexanediamine dihydrochloride are taken as raw materials, ciprofloxacin is added for clathration as an antibacterial agent, the irritation is reduced, the utilization is increased and the action time is prolonged, the antibacterial property of recycled paper is increased, and mildew can be prevented; a silica sol is used as a raw material, and by compounding with calcium carbonate and bentonite, the mechanical properties of recycled paper and the tear resistance can be improved. The environmentally-friendly recycled paper solves the problems of high formaldehyde content and poor water resistance of waste paper at present.