Epoxy polyurethane hybrid emulsion was prepared by using dimethylolpropionic acid (DMPA) as a hydrophilic chain-extender, triethylamine (TEA) as a neutralizer, and epoxy resin as a macromolecular chain-extender. The effect of DMPA and TEA adding method, DMPA content, and neutralization degree on the properties of the epoxy polyurethane emulsion and its film were studied. The results showed that the appearance and stability of the PUE emulsion is improved, the viscosity of PUE emulsion and the hardness and mechanical property of PUE film increases with the increasing of DMPA dosage and neutralization degree; while the particle size of PUE emulsion decreases with the increasing of DMPA dosage and neutralization degree; the water absorption of the PUE film increases with the increasing of neutralization degree and decreases at first then increases with the increasing of DMPA dosage; when the ratio of DMPA to NMP is 6.0%, DMPA adds late in the reaction, and the neutralization degree is 90%~100%, and using the technology of late phase neutralization, the PUE emulsion product has better comprehensive performance.