The invention discloses a green and environment-friendly soil stabilizer taking industrial waste as raw material and an application method thereof, which overcomes the problem of the prior art that lime or cement is taken as the main component of hardening agent, and the lime or cement is hardened to form a fully dense structure, plants can not grow in the structure, so the road greening can not be realized, and other problems. The soil stabilizer of the invention takes the industrial waste as raw material, the industrial waste is evenly mixed with pre-gelatinized starch and sodium polyacrylate, the industrial waste can be of one or the combination of more kinds of coal ash, blast furnace slag or silica micropowder and is used for solidifying soil and preventing water loss and soil erosion; the application method is as follows: the soil stabilizer, plant seed, soil and water are stirred into complex soil, and then the complex soil is coated on the construction surface, the complex soil can be solidified in short time, and usually can not generate water loss and soil erosion under the rainfall condition. The soil stabilizer of the invention has good water permeability, air permeability, water-retaining capacity and nutrient preserving capability, has neutral PH value and facilitates the sprouting and growing of plants.