An 
environmentally friendly water-based paint capable of removing 
formaldehyde through reacting comprises 1 to 10 weight parts of ethylideneimine 
ketone, 30 to 45 weight parts of 
polymer emulsion, 0.5 to 2.0 weight parts of a film forming additive, 0.1 to 0.5 weight parts of an antifoaming agent, 20 to 40 weight parts of 
filling materials, 15 to 30 weight parts of 
distilled water and 2 to 5 parts of other additives. The preparation method of the 
environmentally friendly water-based paint comprises successively adding a 
wetting agent, a dispersant, parts of the antifoaming agent and the 
filling materials into the 
distilled water and then 
grinding to disperse to get 
slurry ; preparing a 30 % ethylideneimine 
ketone solution which is then added into the 
polymer emulsion; and successively adding the 
slurry, the film forming additive, the remaining antifoaming agent, a 
mildew preventor, an 
antifreeze, a 
levelling agent and a 
thickening agent into the 
polymer emulsion, adjusting a PH value to 8.0 to 9.5, and finally carrying out constant volume operation with the 
distilled water. The paint can effectively inhibit release of the 
formaldehyde in water-based paints, and has advantages of low production cost, simple process and suitability for popularizing.