The invention relates to water-holding and moisturizing essence and a preparation method thereof. The water-holding and moisturizing essence is prepared from, by weight, a component A, a component B and a component C, wherein the component A comprises deionized water, dipropylene glycol, sodium hyaluronate (HA), NANO sodium hyaluronate, a PEG/PPG-17/6 copolymer, an amino acid moisturizing agent (trimethylglycine trimethylglycocoll), cetearyl glucoside, an acrylates/vinyl isodecanoate crosspolymer, an ammonium acryloyldimethyltaurate/VP copolymer and ethylene diamine tetraacetic acid; the component B comprises triethanolamine (TEA); the component C comprises panthenol, a CH collagen crosslinked polymer, beta-glucan, Xinlishi, SUCUS, Tridermol Hydrant, Waterin, phellinus linteus extracts, CalmYang, caprylhydroxamic acid and flavor essence. All the components in the formula have synergetic effects so that the product can achieve the effects of penetrating into pores and intensively moisturizing the skin; water is supplemented, the skin is moisturized, and the skin dryness phenomena caused by season, age, skin type and the like are effectively improved.