The invention discloses a modified urea-formaldehyde resin water- and fertilizer-retention high-effective culture medium for flammulina velutipes, which includes the following components, by weight, black soybean skin, shell powder, yeast extract, limestone, urea-formaldehyde resin, oligo-chitosan, coffee bean residue, expanded linen fiber, modified starch solution, rhizobium, bran obtained by fermenting white liquor with brewing yeast, soybean phospholipid, citric acid, cotton seed skin, fermented soybean meal, residue of tremella fuciformis, loofah sponge, glucose, amino acids, zinc sulfate, manganese sulfate and sodium bicarbonate. By means of the yeast extract and the rhizobium supported on the loofah sponge at the same time, decomposition and utilization of the main and auxiliary materials are effectively promoted. The urea-formaldehyde resin, the oligo-chitosan, the coffee bean residue, the expanded linen fiber, the citric acid composition are loaded on the loofah sponge can effectively regulate distribution of moisture and nutrients of the culture medium well, and further achieves the effect of regulating the culture technology and growth principle of the flammulina velutipes. The culture medium is low in labor intensity of culturing the flammulina velutipes and the cultured flammulina velutipes is high in yield and delicious in taste.