The invention discloses modified unsaturated polyester resin with flame retardancy and corrosion resistance. The modified unsaturated polyester resin is prepared from raw materials in parts by weight as follows: maleic anhydride, diethylene glycol, phosphoric acid, dicyclopentadiene, phthalic anhydride, maleic anhydride, propylene glycol, hydroquinone, styrene, propoxylated bisphenol A, toluene diisocyanate, modified phenolic resin, epoxy resin, isophthalic acid, oleic acid, benzotriazole, methyl ethyl ketone peroxide, cobalt isooctanoate, composite filler, a composite flame retardant, a silane coupling agent KH-550, a toughening agent, a curing agent, a leveling agent, a curing accelerator and deionized water. The invention further discloses a preparation method of the modified unsaturated polyester resin with flame retardancy and corrosion resistance. The prepared modified unsaturated polyester resin has outstanding flame retardancy and corrosion resistance.