The invention discloses a silicate plugging agent for oil-well water plugging and an application method thereof, wherein the silicate plugging agent comprises the following components by weight percentage: 8-12% of general purpose portland cement, 1-3% of silica fume, 0.3-0.7% of water glass, 0.01-0.03% of sodium lignin sulfonate and the balance of water. The application method of the silicate plugging agent for oil-well water plugging comprises the following steps: in the stirring process, orderly adding the water glass, the sodium lignin sulfonate and the silica fume in a stirring pot with water proportionally, and stirring evenly to obtain a mixed solution; next, adding the general purpose portland cement to the mixed solution while stirring to form the base solution of the silicate plugging agent; and pouring the base solution of the silicate plugging agent into formation fractures. The silicate plugging agent provided by the invention has the advantages of high water cement ratio, good pumping performance, long initial setting time, high after-final-setting strength, good water scouring resistance, all of which are similar to the own physical properties of the formation; the silicate plugging agent is capable of achieving the construction requirements of oil-well water plugging; and the properties of the silicate plugging agent are suitable for nonhomogeneous fractured reservoirs.