The invention discloses a water-retaining moisture-preserving cultivation method of edible fungi. The method of the invention comprises, for water retaining and moisture preserving, first, selecting asuitable amount of a cultivation material according to the type of an edible fungus, loading the cultivation material and the edible fungus in a fungal bag through a bagging machine, selecting a drill bit to make a plurality of through holes in the outer surface of the fungal bag, placing the fungal bag on a processing table, selecting absorbing cotton, namely selecting matching absorbing cottonaccording to the diameter and length of the fungal bag, cutting the absorbing cotton, covering the fungal bag with the absorbing cotton, and pasting with glue. After a water solution is adsorbed gradually by the absorbing cotton and is the transferred to the fungal bag via the absorbing cotton; after the water is squeezed, the water is absorbed to the residue via through holes in the fungal bag sothat sufficient water is kept in the fungal bag to allow normal growth for the edible fungus; the water solution is supplied continuously into the fungal bag under the action of the absorbing cotton,the fungal bag is not soaked directly in the water, and therefore, the problem that the fungal bag which is too moist causes growth of bacteria is solved.