In this paper,Palmitic acid-2-hydroxy-3-sulfonic sodium propyl ester was prepared with palmitic acid as main material by steps of sulphonation, saponification and esterification. And optimum reaction conditions of each experiment was investigated, the results showed that the best conditions for sulphonation were n(epichlorohydin):n(sodium bisulfite)=0.87:1, reacted at 85°C for 3.5h,conversion ratio was 80.4%. The optimum reaction conditions of sodium palmitate were n(palmitic acid):n(sodium hydroxide)=1:1, reaced at 85°C for 4.5h, conversion ratio was 83%. Palmitic acid-2-hydroxy-3-sulfonic sodium propyl ester was obtained under optimum conditions of n(3-chloro-2-hydroxy sulfonate): n(sodium palmitate)=1.1:1, reacted at 65°C for 6.5h, conversion ratio of product was 86.82%. The structures of product were characterized by FTIR, and its surface properties were studied: such as critical micelle concentration, surface tension , emulsibility and foamability .