The invention belongs to the technical field of building materials, and particularly relates to preparation of magnesium phosphate cement with good hydrolytic resistance and a using method thereof. The magnesium phosphate cement is prepared from calcined magnesia, monopotassium phosphate, retarder, desulphurization gypsum, coal ash, steel slag powder, limestone flour, a water reducing agent and a defoaming agent. The defects that traditional magnesium phosphate cement is insufficient in early strength, low in later strength, poor in water resistance, high in cost and the like can be overcome, and the additional value of the industrial byproducts such as the coal ash, the steel slag powder and the desulphurization gypsum can be improved. The magnesium phosphate cement with good hydrolytic resistance can be used as a rapid repair material, has the excellent properties that preparation technology is simple, fluidity is good, early strength development is fast, later strength is not reduced and permeability and erosion resistance is good, is applicable to rapid repair engineering of bridges, wharfs, municipal engineering and the like, and has good economic benefits and social benefits.