The invention relates to multifunctional knitted underwear shell fabric and a preparation method thereof. The shell fabric comprises an inner layer structure and an outer layer structure. An outer layer comprises cellulosic fibers and elastic fibers, an inner layer comprises coffee carbon fibers and cellulosic fiber blended yarns, and the weight ratio of the coffee carbon fibers to the cellulosic fiber blended yarns is 35-40: 60-65. The preparation method comprises the following steps of structure designing, weaving by adopting a weft knitting double-face multi-needle channel rib needle machine, fabric presetting, pre-processing, dyeing, post-processing, fixation, washing and drying. The multifunctional knitted underwear shell fabric is obtained through the method. The multifunctional knitted underwear shell fabric has the advantages that preparing processes are scientific and environment-friendly, cost is saved and effects are durable. The multifunctional knitted underwear shell fabric has good water sucking performance and a function of infrared, is anti-bacteria, deodorizing, environment-friendly, moisture-absorbing, anti-pilling and good in elastic recovering property, and can be dried fast and can heat. In addition, the multifunctional knitted underwear shell fabric solves the technical problem that the color systems of coffee carbon fiber products are few, the coffee carbon fiber products are made to be colorful, and the multifunctional knitted underwear shell fabric has good application prospect.