A non-sticking lip tipping paper is disclosed that includes a base paper, a color layer and a surface coating. The color layer is formed by printing and drying a color ink on the base paper; the surface coating includes a water-based glue and is coated thereon after drying the color layer. The water-based glue includes the following components by weight: 30-65 parts of a modified water-based resin solution, 10-20 parts of water, 8-15 parts of ethanol, and 5-12 parts of a water-based additive. The water-based additive is a mixture of a wax emulsion and magnesium silicate in a weight ratio of 1:5. A preparation method and a method of applying the non-sticking lip tipping paper are also disclosed.