Uniaxial compression and acoustic emission experiments of calcareous mudstone with different water content were carried out by using microcomputer controlled electro-hydraulic servo compression testing machine control system of YAW series equipped by coal-rock acoustic and electric data acquisition system of CTA-1-type. Mchanical properties and acoustic emission law of calcareous mudstone were studied. It is concluded from experiment result that rock’s elastic modulus and compressive strength both decrease with increase water content but peak stress shows the opposite trend. It is also found that calcareous mudstone is brittleness with low water content but when water content reaches saturation, calcareous mudstone presents plastic features. Acoustic emission curve fits well with stress-strain curve: acoustic emission activity begins intensifying when stress reaches 70% of peak stress, correspondingly, acoustic emission is up to maximum at peak stress. Based on Weibull hypothesis and acoustic emission experiment, damage law of water bearing calcareous mudstone is researched and damage evolution equation with time variable is advanced.