The invention discloses degradable environment-friendly packaging paper. The degradable environment-friendly packaging paper is prepared from the following components in parts by weight: 70-90 parts of degradable fibers, 10-20 parts of polylactic acid fibers, 40-50 parts of pine fiber slurry, 20-40 parts of sodium carboxymethyl cellulose, 5-15 parts of a dispersing agent, 10-15 parts of alum, 1.5-3 parts of an antioxidant, 1-3 parts of a drying agent, 2-4 parts of wood fibers, 20-30 parts of calcium pyrophosphate, and 0.1-0.2 part of hydroxyethyl cellulose. The invention further discloses a preparation method of the degradable environment-friendly packaging paper. The degradable environment-friendly packaging paper is simple in manufacturing process, high in degradation rate, efficiently degraded in conditions of open air or deep burying, and environmentally friendly, the interior of the paper is provided with the drying agent which can dry the surface of the paper so that the paper isnot easy to mildew.