The present invention relates to a nanobody GN2 composed of a variable region of a heavy chain antibody; and the variable region of the heavy chain antibody comprises an epitope complementary region selected from a group consisting of CDR1, CDR2 and CDR3 and homologous sequences of the CDR1, CDR2 and CDR3 and a skeleton region selected from a group consisting of FR1, FR2, FR3 and FR4 and homologous sequences of the FR1, FR2, FR3 and FR4. The present invention also relates to a preparation method and an application of the nanobody GN2. The nanobody GN2 can specifically bind to hepatocarcinoma cells that highly express GPC3 protein, inhibits hepatocarcinoma cell proliferation, and is small in molecular weight, stable in structure, good in heat resistance, high in affinity, easy for storage and transportation, weak in immunogenicity to human body, also strong in tumor tissue penetrating power, liable to express and genetically engineered, and particularly suitable for use as a diagnosticreagent or a therapeutic antibody. The method can retain more antigen epitopes, and is high in carrier quality, good in an enzyme digestion effect, high in connection efficiency, low in self-connection efficiency and also low in cost.