Firstly, I-RPT ultrasonic detector was used to test the wave velocity of karst limestone with different initial microstructure and water content. Then, RMT-150B rock testing machine and DS2-16B acoustic emission system were used to test the acoustic emission (AE) under uniaxial compression. Mechanical properties and AE characteristics were obtained during rock failure. The detailed relationship between stress-strain and AE characteristics was studied in this paper. Research results indicated the following: (1) For samples with many primary fissures and defects, wave velocity in dry state was larger than that in its natural state. From natural state to saturated state, the wave velocity tended to increase. For samples with good integrity, wave velocity increased with increasing of water content. (2) In the dry state, the samples presented tension failure. In saturated state, the samples presented tension-shear failure. For samples with cracks and good integrity, samples showed brittle failure. For samples with many corrosion pores which showed ductile damage under natural and saturated state, the spalling phenomenon was enhanced under saturated state. (3) With increasing of water content, the peak stress and AE peak reduced dramatically. In brittle failure, AE peak could be considered a sign of failure. In ductile failure, AE activity decreased gradually with the decrease of stress. (4) The mechanical properties and AE characteristics corresponding to four main fracture propagation types were also discussed.