The invention discloses a multifunctional fusion polypeptide and its preparation method and application thereof, in the field of biopharmaceutics. The fusion polypeptide of the present invention comprises the domain Pro-(D-Pyr)-(D-Cys)-Bip-Arg-Gly-Glu, Ile-Val-Arg-Arg-Ala-Asp-Arg-Ala-Ala-Val-Pro, Arg-Gly-Asp, and Gly-Gly-Gly-Gly, and can treat human pulmonary fibrosis, lung tissue lesions, lung cancer and other tumors. In a cell model for pulmonary fibrosis, the polypeptide of the present invention can significantly lower the hydroxyproline content and suppress the progression of pulmonary fibrosis. MTT assay shows that the polypeptide of the present invention can inhibit the proliferation multiple human tumor cells. The polypeptide of the present invention is prepared by a synthetic method that is uncomplicated method and offers good application prospects.