The invention relates to a water-based cutting fluid, comprising water, water-solubility polyether, high-level fatty alcohol, surfactant, extreme pressure additive, anti-corrosion agent, antiseptic. Compared with the prior art, the invention has better technical performance, longer service life, contains no sodium nitrous acid and unsulfated matter, has no stimulation and toxicity corresponding to the request of environment protection, can be used in cycling, has no oil frog produced, has no corrosion to machine tool and machinery, has strong separation ability, produces no oil contamination and has capacity of anti-rust.