The invention discloses a water holding slow-controlled releasing fertilizer and a preparation method thereof, belonging to the technical field of agricultural fertilizers and preparation thereof. Macromolecule coating fertilizer is taken as an inner core and a water holding layer is taken as an outside layer to form a double-coating water holding slow-controlled releasing fertilizer; an inner coating is macromolecule protective layer coating material with nutrition controlling and releasing property; an outside coating is the water holding layer with excellent water holding property. Water retention agent suspension liquid is sprayed to the surface of macromolecule coating fertilizer grains for outside coating; wherein the water retention agent is prepared by taking cyclohexane, emulsifier, acrylic acid, acrylamide, sodium hydroxide, cross linker and evocating agent and adopting the method of opposite phase suspension polymerization. The fertilizer has the function of controlled releasing, drought resistance, water saving, water holding and soil improving and the advantages of high absorption percentage, wear resistance, difficult falling and the like; utilization ratio of liquid manure is improved and the fertilizer can be widely used to desert control, lawn plant, soil improvement, gardening, agriculture and forestry and the like.