The invention discloses an inner wall spraying putty which comprises the following materials: white cement, slaked lime, heavy calcium carbonate, cellulose ether, polymer powder, a thixotropic agent, a water reducer, a moisture repellent, a defoaming agent and wood fiber. The invention also discloses a method of using the inner wall spraying putty. The method comprises the following steps of: mixing the inner wall spraying putty with clean water, stirring the mixture to be at a uniform block-free state, standing for two minutes, and then stirring for 30 seconds. The inner wall spraying putty has a reasonable formula, and is green due to no using of 107 or 108 glue and containing no formaldehyde, the sprayed putty is flat and smooth, has a firm surface, is unlikely to dust and craze, has good water resisting property, is easily stirred uniformly, free from obvious blocks, less in spraying resistance and strong in constructability, is particularly suitable for mechanized construction, ensures the spraying effect, and also greatly improves the construction efficiency. The method provided by the invention has simple technique steps, and is easy to realize and high in efficiency.