The invention discloses an aqueous coating adhesive containing multiple coating modified ammonium polyphosphate and applications thereof on fabric finishing. The single modified ammonium polyphosphate can not acquire excellent wash-resisting, immersion-resisting and durable fire retardant performance from the fabric, and can not even obtain dry and comfortable hand feeling. The invention is characterized in that the ammonium polyphosphate, which is modified by melamine, single silane or epoxy resin, is subjected to heating and backflow in an organic alcohol-like solvent, a silane coupling agent capable of being bonded with active groups in the modified ammonium polyphosphate is then added so that the surface of the ammonium polyphosphate experiences multilayer coating and has active hydrogen; the coated ammonium polyphosphate is added with a nonionic surfactant, water, a binder and aqueous closed polyurethane, the aqueous coating adhesive containing the multiple coating modified ammonium polyphosphate is obtained by means of dispersed grinding. The invention is coated on terylene or pure cotton fabrics, thus realizing the cross-linked film forming of the ammonium polyphosphate and the aqueous closed polyurethane and the aqueous binder, and obtaining waterproof and durable environmentally-friendly fire retardant coating fabric.