The invention discloses a naphthylthiourea-modified permethylated beta-cyclodextrin derivative, a preparation method and an application method thereof, the chemical formula of the compound is C73H118N2O34S, and the structure and the schematic diagram are shown as attached figures. The compound is simply prepared by the reaction of an amino derivative of cyclodextrin and naphthalene isothiocyanatewith high yield. The compound has high selectivity and high sensitivity on the recognition of mercury ions due to high sulphophile affinity of mercury. The divalent mercury ions are added in the compound in a water phase, fluorescence can be greatly ascended in a short period of time, the detection limit is 50ppb, the compound is resistant to the addition of other ions, such as, Li<+>, Na<+>, K<+>, Mg<2+>, Ca<2+>, Sr<2+>, Ba<2+>, Ag<+>, Cd<2+>, Ce<2+>, Co<2+>, Cu<2+>, Ni<2+>, Pb<2+>, Sr<2+>, Zn<2+> and the like, and the compound has no obvious change after the addition of other ions. The invention provides a reagent and a method which can rapidly test water solubility of the mercury ions in an environment and a biological body with high selectivity, high sensitivity and fluorescence enhancement and is applicable to the wider pH range of (3-12).