The invention discloses an environment-friendly anti-crease finishing agent for garment fabrics and a preparation method thereof. The finishing agent is prepared from the following components in parts by weight: butyl acrylate, trimethyl phosphite, styrene, 10 to 20 parts of polyoxyethylene ether, microcrystalline cellulose, sodium carboxymethylcellulose, dimethyl phosphate, dimethicone, N-methylpyrrolidone, citric acid, nano zinc oxide, a thickener, a surfactant, an emulsifier, a bacteriostatic agent, and deionized water. The finishing agent is low in yellowing, does not affect the original whiteness and color light of a textile, is high-temperature-resistant, can be instantaneously dissolved at high temperature, can give the textile a soft, fluffy and smooth hand feel, has no adverse effects on whiteness, color light and color fastness, has good fast water solubility, soft and smooth property and low spumescence, is suitable for soft finishing of various textiles, can give the textile a plump, smooth and soft hand feel and good water absorption, and can give the textile an excellent antistatic property, anti-pilling property and anti-crease property; the production cost is low, and the economic benefit is good.