The invention relates to the technical field of fertilizers, in particular to a functional soil remediation water soluble fertilizer and a preparation method thereof. The functional soil remediation water soluble fertilizer consists of the following raw materials in parts by weight: 20-30 parts of urea, 15-25 parts of ammonium nitrate, 8-20 parts of double superphosphate, 10-30 parts of potassiumnitrate, 8-12 parts of potassium sulfate, 15-25 parts of humic acid, 4-12 parts of a compound micro-fertilizer, 10-20 parts of compound bacteria, 20-30 parts of water boiling liquid, 20-30 parts of acompound algae extract and a plurality of water. The functional soil remediation water soluble fertilizer provided by the invention is prepared by based on soil fertility, pollution situation and thelike and according to a crop fertilizer requirement law, is uniformly distributed in plant root soil through the water and fertilizer integration and can also effectively infiltrate into the ground surface to effectively remedy the soil remediation while meeting the needs of crops for various nutrients, realizing the precision fertilization and improving the fertilizer utilization rate.