A cigarette paper additive having harm reduction function and application thereof are provided. The additive contains alkali metal salts of butane tetracarboxylic acid or cyclobutane tetracarboxylic acid which are prepared by reacting the butane tetracarboxylic acid or cyclobutane tetracarboxylic acid with alkali. The application thereof is evenly adding the aqueous additive solution at different concentrations to cigarette paper by a metering rod-type film transfer sizing machine in a sizing section of the cigarette paper production, and the produced cigarette paper is used for cigarette production that can effectively reduce release of CO, phenol and tar in the mainstream smoke, and has better effects of harm reduction and tar reduction. The method of the invention is easy, does not need to alter the existing cigarette paper production process, and has low cost and higher industrial application value.