The invention relates to functional sublimation transfer printing paper and a preparation method and application thereof. The transfer printing paper comprises a piece of paper and a coating arranged on the surface of the piece of paper; the coating comprises 5%-15% (w/w) of macromolecule thickening agents, 0.25%-2.5% (w/w) of inorganic nano-materials, and the balance solvents; the inorganic nano-materials are one or more kinds of inorganic nanoparticles. The transfer printing paper adopts the special transfer substrate coating, and especially the inorganic nano-materials are added, so that the transfer effect is ensured, and fabrics obtain the certain functionality. The process is easy and convenient to implement and convenient to control, and the fabrics do not need to be preprocessed before printing is conducted. The functional sublimation transfer printing paper can achieve the optimal transfer effect and functionality when applied to synthetic fabrics with the glass transition temperature.