The invention discloses a preparation method of water-soluble acrylic resin for a reflection film. The water-soluble acrylic resin is prepared from the following raw materials in parts by weight: methyl methacrylate, ethyl acrylate, lauryl methacrylate, hydroxyethyl methylacrylate, acrylic acid, 1-ethyoxyl-2 propyl alcohol, dimethylethanolamine, deionized water and benzoperoxide through the following preparation steps of preparing a mixed solution A, feeding the mixed solution A into a reaction container to react, performing stirring, and continuously inputting nitrogen gas; stopping the nitrogen gas input, and raising and maintaining the temperature; preparing and dripping a mixed solution B, and after the dripping completion, maintaining the temperature; preparing and dripping a mixed solution C, and after the dripping completion, maintaining the temperature; preparing a mixed solution D, performing high-speed stirring dispersion, turning off a machine, and pouring out the materialsto obtain the transparent water-soluble acrylic resin for the reflection film. The water-soluble acrylic resin obtained by the invention has the advantages of good water resistance, intensity and elongation balance; and when the water-soluble acrylic resin is applied to the reflection film production, a reverse adhesion phenomenon and sudden and violent bubbling cannot easily occur in the coating,so that the appearance is full and flat.