The invention discloses a preparation method of a nickel hydride battery. The preparation method is characterized by comprising the following steps: (1) preparing a cylindrical shell with an opening at the top end and a battery core; (2) coating the inner wall of the opening of the cylindrical shell with an insulating wet film; (3) installing the battery core into the shell, pitting at the insulating coating by a pitting machine, fixing the battery core, adding electrolyte, uniformly redistributing the insulating wet film coating on the inner wall of the deformed shell at the moment, and further curing to form a dense insulating wet film layer; (4) preparing a battery top cover, fixing the battery top cover to obtain the nickel hydride battery. The invention further provides a nickel hydride battery product prepared by the preparation method. The nickel hydride battery product comprises the cylindrical shell and the battery core; the inner wall of the opening of the cylindrical shell is coated with the insulating coating. An insulating meson is not required to be added additionally, so that preparation processes and components of the battery are reduced, the production efficiency and the product quality of the battery are improved and the production cost of the battery is reduced.