The invention belongs to the field of steel rust removers, and discloses an environment-friendly steel rust remover and a preparation method thereof. The environment-friendly steel rust remover and the preparation method thereof are used for solving the technical problems that an existing steel rust remover is prone to re-rusting, long in rust removal time and high in cost and pollutes the environment. The rust remover is composed of citric acid, oxalic acid, phosphoric acid, sodium alkyl benzene sulfonate, an emulsifier, a corrosion inhibitor and deionized water, or composed of citric acid, oxalic acid, phosphoric acid, sodium alkyl benzene sulfonate, an emulsifier, a corrosion inhibitor, an anti-freezing agent and deionized water. The preparation method includes the steps that 1/2 of water is added into a reaction still; the phosphoric acid, the citric acid, the oxalic acid, the sodium alkyl benzene sulfonate, the corrosion inhibitor and the emulsifier (or the phosphoric acid, the citric acid, the oxalic acid, the sodium alkyl benzene sulfonate, the corrosion inhibitor, the anti-freezing agent and the emulsifier) are sequentially added with stirring at the speed of 100-150 revolutions per minute; the remaining water is added; and the mixture is stirred at a constant speed till complete dissolution. The environment-friendly steel rust remover is applied to steel rust removal.