The invention provides an environment-friendly water treatment agent capable of removing ammonia and nitrogen. The water treatment agent is prepared from the following raw materials: nitrosomas, polyacrylamide, sodium dodecyl-benzenesulfonate, nekal, polyferric chloride, sodium hydroxide, sodium hypochlorite, zeolite, zinc hydrogen phosphate, magnesium dihydrogen phosphate, aluminum hydroxide, magnesium hydrate and phosphoric acid. A preparation method of the environment-friendly water treatment agent capable of removing ammonia and nitrogen comprises the following steps: a, weighing polyacrylamide, sodium dodecyl-benzenesulfonate, nekal, polyferric chloride and deionized water, then adding the materials into a stirrer, and uniformly stirring; b, successively adding sodium hydroxide, sodium hypochlorite, zeolite, zinc hydrogen phosphate, magnesium dihydrogen phosphate, aluminum hydroxide and magnesium hydrate into the stirrer, and uniformly stirring; c, adding nitrosomas into the stirrer, and uniformly stirring; and d, adding phosphoric acid into the stirrer, and uniformly stirring to obtain the treatment agent. The environment-friendly water treatment agent capable of removing ammonia and nitrogen is low in cost and high in removal efficiency of ammonia and nitrogen, and is suitable for extensive popularization.