The invention discloses a water-based environment-friendly anti-rust internal wall building coating and a preparation method thereof. The coating comprises the following components by weight percent: 25%-30% of water, 2%-5% of propanediol, 15%-20% of GHS98A-302 silicone acrylic emulsion, 12%-16% of GH-26XB silicone acrylic anticorrosion emulsion, 3%-8% of 1,000-mesh superfine calcium zinc phosphate powder, 3%-7% of 1000-mesh WD-S-800 superfine iron-titanium compound powder, 12%-16% of 1,000-mesh superfine rutile titanium dioxide powder, 5%-12% of 1,000-mesh superfine talcum powder, 2%-5% of alcohol ester-12(DN-12), 0.5%-2% of a DA dispersant, 0.1%-0.3% of a GHP thickening agent, 0.1%-0.3% of a water-based de-foaming agent JS-R201 and 0.1%-0.3% of a sterilizing preservative LC-18. The coating does not contain heavy metal, is environment-friendly, has the characteristics of high drying speed, water resistance, acid resistance, alkali resistance, chemical drug corrosion resistance, scrub resistance, artificial weathering aging resistance, good adhesion, salt mist resistance, good rust resistance and the like, and has good application prospects; the emission of VOC (volatile organic compounds) is zero.