An environment-friendly water-based demolding release composition is prepared from, by weight, 4-6 parts of alkyl silicone oil, 8-12 parts of polyvinyl alcohol, 3-5 parts of sulfonated methyl cellulose, 3-5 parts of oxidized polyethlene wax, 1-3 parts of cyclodextrin, 1-3 parts of solvent oil, 2-4 parts of isopropanol, 2-4 parts of dioctyl sodium sulfosuccinate, 8-12 parts of polyacrylamide, 0. 1-1 part of isopropanolamine, 6-10 parts of fatty alcohol polyoxyethylene ether, 0.5-1 part of imidazoline compound, 1-2 parts of isothiazolinone compound and 55-60 parts of deionized water, wherein the polymerization degree of polyvinyl alcohol is 2300-2500, the alcoholysis degree is 87-100%, and the alkyl silicone oil is 3-hexyl trimethyltrisiloxane.