The invention relates to a phosphatide based metal processing emulsion, which comprises the following components in percentage by volume: 10 to 50 percent of modified soybean phosphatide, 3 to 16 percent of tween-80, 0.3 to 5 percent of absolute ethyl alcohol, 0.5 to 6 percent of phosphating solution antirust agent, 0.5 to 8 percent of sym-triazine preservative bactericide, 0.5 to 7 percent of organic silicon antifoaming agent, 1.5 to 8 percent of 20- 45% (w/v) NaOH aqueous solution, and the balance of water. During preparation, the components are uniformly mixed, and then the mixture is homogenized to prepare the emulsion. The phosphatide based metal processing emulsion has a reasonable formula, and the product has excellent lubricating property, rust-preventing characteristic, cooling characteristic, cleaning characteristic, bactericidal characteristic and high stability, can meet the uses and various processing requirements of machine tools, grinding machines, turning machines and the like, also has the advantages of low volatility, non-toxicity, high biodegradability, reutilization and the like, and can be used as a universal metal processing cutting solution to replace mineral oil based metal processing fluid; besides, the performance of the phosphatide based metal processing emulsion is superior to that of common mineral oil based processing fluid.