The invention discloses an aqueous elastic rubber paint and its application method. According to the invention, water-soluble alcohol acid hybrid resin and polyurethane hybrid resin are used as main materials, and flatting silica, water, a polyisocyanate curing agent, triethylamine and the like are used as auxiliary materials. All the above materials undergo stirring, dispersing, mixing, spraying, drying, cooling, examination and packaging so as to prepare the aqueous elastic rubber paint. In comparison with a traditional oil rubber paint, the rubber paint provided by the invention has advantages of excellent comprehensive performance, special touch feeling, good flexibility, and good weatherability, waterproofness, wear resistance and solvent resistance. By the use of the rubber paint provided by the invention, properties (such as cold and hard feelings) of plastic and leather surfaces are greatly improved, and plastic and leather are endowed with a napping touch feeling. The rubber paint provided by the invention has stable quality, is easy to package, transport and store, is moistureproof and antifreezing, will not breed bacteria or microbes, and is suitable for being used as ABS, PC and PSPC engineering plastic decorative paint of any touchable parts such as steering wheels, desks, laptop computers, handsets and the like.