The invention discloses a multifunctional colored pencil core. The multifunctional colored pencil core is prepared from the following raw materials in percentage by weight: 10% of clay, 40% of fine talcum powder, 20% of stearate, 10% of surfactant, 4% of pigment, 6% of sodium carboxymethylcellulose and 10% of micronized refined wax. A preparation method of the multifunctional colored pencil core comprises the following steps: stirring, grinding, storing, pressing, core drying, and end cropping, thereby obtaining the multifunctional colored pencil core. The multifunctional colored pencil core prepared by the preparation method has the advantages that writing on dry materials and wet materials can be realized, if the pencil core is applied to writing on dry paper, the effect of graphite is achieved, and if the pencil core is applied to writing on the wet materials, the effect of a water-soluble colored pencil core is achieved, and therefore, the effect of utilizing one pencil for multiple purposes is achieved.