The invention discloses environment-friendly wire cutting liquid. The environment-friendly wire cutting liquid is prepared from the following substances in parts by weight: 5.8 to 6.2 parts of sorbitan monooleate, 5.2 to 6.5 parts of oleic acid, 3.8 to 4.3 parts of antirust agent, 3.5 to 4.2 parts of Turkey red oil, 0.8 to 1.1 parts of potassium hydroxide, 0.6 to 1.1 parts of deionized water, 1.0to 1.4 parts of methyl alcohol, 0.01 to 0.05 part of 1H- benzotriazole, 1 to 1.2 parts of anticorrosive inhibitor, 70 to 80 parts of low-viscosity naphthenic base oil and the balance of a less amountof defoaming agent. A preparation method of the environment-friendly wire cutting liquid comprises the following steps: (1) successively adding the low-viscosity naphthenic base oil, the sorbitan monooleate, the oleic acid and the Turkey red oil into a mixing kettle according to a ratio, and then heating and stirring; and (2) then successively adding potassium hydroxide, the deionized water, the antirust agent, methyl alcohol, benzotriazole, the anticorrosion inhibitor and the defoaming agent according to a ratio, and stirring. By adopting the environment-friendly wire cutting liquid and the preparation method thereof, the safety and environment-friendly performance of the cutting liquid can be greatly improved, the overhigh temperature in a cutting region is avoided, a cut workpiece is good in heat conductivity, free from smoke and deterioration, safe, environmentally friendly, and free from peculiar smell.