The invention discloses a multifunctional expandable fiber anti-cracking waterproof agent. The multifunctional expandable fiber anti-cracking waterproof agent comprises the following components in parts by weight: 8-27.3 parts of calcium sulphoaluminate, 4-9 parts of calcium oxide, 5-9 parts of magnesium oxide, 14.7-23.5 parts of fly ash, 4-9 parts of an iron powder expanding agent, 1.5-7.8 partsof a modified sepiolite fabric, 1-4.5 parts of modified polypropylene fibers, 1.5-4 parts of sodium methyl silicate, 0.5-1.5 parts of sodium fluosilicate and 1-4 parts of a polycarboxylic acid effective water reducing agent, wherein the modified sepiolite fabric is modified through diluted hydrochloric acid and a silane coupling agent, the modified polypropylene fibers are modified through potassium dichromate, concentrated sulfuric acid and a silane coupling agent, thus, mutually cross-linked net-shaped structures are formed in concrete, compared with an existing anti-cracking waterproof agent which takes common sepiolite, sepiolite fibers and polypropylene fibers as raw materials, the anti-cracking waterproof agent is better in anti-cracking property and expanding property, shorter in time of coagulation and higher in concrete performance. The invention further provides a preparation method of the anti-cracking waterproof agent, and the raw materials are blended by a two-step method.