The invention belongs to the technical field of organic residue recovery and particularly relates to a method for producing 3-methylthio-2-hydroxy-propylhydrazine from epoxy propyl dimethyl sulfide residues. The method comprises the steps as follows: epoxy propyl dimethyl sulfide residues and hydrazine hydrate are subjected to a hydrazinolysis reaction in the presence of a catalyst, a reaction liquor is extracted with an organic solvent, reduced pressure distillation is performed, and 3-methylthio-2-hydroxy-propylhydrazine is obtained. The method comprises simple reaction steps and is easy tocontrol and operate, short in production cycle and prone to industrial production. The epoxy propyl dimethyl sulfide residues are reutilized, waste is changed into wealth, resources are saved, environmental pollution is reduced, and the method has good economic benefits.