The invention discloses a preparation method of environment-friendly bacteriostatic toilet paper. The preparation method comprises the following steps: crushing Chinese herbal medicines, adding waterwhich is 8-12 times of weight of the Chinese herbal medicines, boiling with big fire, carrying out decoction for 2-4 hours with soft fire, and filtering, so as to obtain filtrate; and mixing birch pulp, cotton linter, a water absorbent, a filling agent, a lubricant, octadecanol, polymaleic anhydride, polyvinyl alcohol and glycol, grinding at pressure of 0.012kPa-0.45kPa for 2-4 minutes, adding thefiltrate into the mixture, uniformly mixing for pulping, and manufacturing paper with pulp, so as to obtain the environment-friendly bacteriostatic toilet paper. According to the preparation method,the process is simple, the cost is low, and the product has good antibacterial property, is capable of diminishing inflammation, killing bacteria, invigorating the circulation of blood and diminishingswelling, is degradable and has high economic benefits and practical values.