This paper discusses the applicability of Kalman filter in 3D dynamic monitoring of environmental cost. By selecting Kalman filtering algorithm which is suitable for dynamic environmental cost monitoring, the three-dimensional state-space model of environmental cost and the three-dimensional observation system were established based on the analysis and test of the three-dimensional dynamic data of environmental cost. In addition, by analyzing the algorithm of 3D dynamic monitoring model of environmental cost, a three-dimensional state-space monitoring model of environmental cost based on Kalman filter was constructed. Finally, empirical research study of the cement manufacturing enterprise of Ezhou city of Hubei province was carried out.