The invention provides adhesive with indicating function. The adhesive with the indicating function is prepared by heating water to between 40 and 60 DEG C, adding polyvinyl alcohol into the water, heating the mixture till boiling to dissolve the polyvinyl alcohol, cooling the mixture to room temperature, adding sodium carboxymethylcellulose into the mixture, dissolving the sodium carboxymethylcellulose with stirring, continuously heating the mixture to between 40 and 50 DEG C, adding swelling gelatin into the mixture, stirring the mixture uniformly, adding glutaraldehyde into the mixture, stirring the mixture for 10 to 20 minutes, cooling the mixture to room temperature, then adding ethanol solution of triarylmethane leuco dye into the mixture, and adding sodium hydroxide solution into the mixture. The method has the advantages of simple and feasible preparation process, low cost and easy production; and the adhesive has the most prominent characteristics that the color of the adhesive can indicate the adhered part so as to reduce the waste of repeated coating, the color of the adhered part can fade in short time, and no trace is left.