The invention provides a green environment-friendly building mortar and a preparation method thereof, and relates to the technical field of building materials, wherein the building mortar is preparedfrom the following raw materials in parts by weight: 30-45 parts of building waste, 40-50 parts of Portland cement, 20-30 parts of a steel slag micro-powder, 15-20 parts of a water slag micro-powder,1-1.3 parts of aminosulfonate, 1-3 parts of calcium chloride, 1-2 parts of aluminum oxide clinker, 1.5-2 parts of cellulose ether, 0.5-1 part of emulsified silicone oil, 0.3-0.5 part of modified waterborne epoxy resin, 1-1.5 parts of polypropylene fibers, 1-1.3 parts of regenerated rubber, 1-2 parts of zinc stearate, 0.5-1 part of aluminum hydroxide, 1.5-4 parts of glass microbeads, 2-3 parts of alkali lime, 0.2-0.4 part of higher fatty acid, 0.1-0.3 part of rosin resin, 1-2 parts of an admixture, and 8-10 parts of water. The preparation method of the green environment-friendly building mortarincludes four steps; the green environment-friendly building mortar has the properties of heat preservation, heat insulation, noise reduction, sound insulation, fire prevention, water prevention, lowenergy consumption and moisture prevention, has good durability, mechanical properties and mechanical strength, and has better economic benefits and environment-friendly functions.