The invention relates to green and environment-friendly fabric interwoven by Lyocell filament and staple fiber yarn and a preparing method of the green and environment-friendly fabric. Regarding the green and environment-friendly fabric interwoven by the Lyocell filament and the staple fiber yarn, the Lyocell filament serves as warp, cellulose fiber stable fiber yarn serves weft, and the green andenvironment-friendly fabric is processed through weaving. The preparing method of the green and environment-friendly fabric comprises the steps of 1, selecting Lyocell FDY (fully-drawn-yarn) and cellulose fiber stable fiber yarn as raw materials; 2, beaming the Lyocell filament; 3, sizing the Lyocell filament; 4, re-beaming the Lyocell filament; 5, leasing the Lyocell filament; 6, drafting and reeding the Lyocell filament; 7, weaving into the fabric. The fabric is high in degradability, and has excellent water absorption performance, draping and abrasive resistance, and is not prone to pilling, high in fastness and little in colored light change; the warp serves as the filament, the spinning process is omitted, the energy and labor are saved, the preparing cost is low, and the method is simple and suitable for industrialized production.