The invention discloses a multifunctional crop straw turf production and preparation method, which comprises the steps of mechanically grinding straws; treating with a preservative; mechanically rolling; and carrying out secondary fermentation and storage, so as to obtain multifunctionally utilized biological turf, wherein the preservative is one of 'Em' fungicide, urea and formaldehyde, or a combination of 'Em' fungicide, urea and formaldehyde. The invention also provides application of the turf prepared by using the preparation method of the multifunctional crop straw turf in the aspect of biomass recycle. The turf can be used as a biofertilizer, a biological feed, biological fuel, an edible fungi base stock, a biological fibreboard and an energy material. The multifunctional turf is wide in raw material resource and low in price; the preparation method is simple and convenient and low in cost, can achieve the purpose of attractive price and quality, and is a good method which is adopted by various regions; the big problem of straw utilization is solved, and a new economic way for rural development is initiated.