Containing phosphorus compound is widely used in the modification of flame retardant polyester due to the excellent flame retardant properties. But it is difficult to solve the droplet problems, especially the polyester fiber. In this paper the copolyesters and fiber with flame retardant and anti-droplet were prepared using reaction containing phosphorus flame retardant [(6-Oxido-6H-dibenz [c, e] [1, 2] oxaphosphorin-6-yl) methyl] butanedioic acid (DDP) and silica sol by in-situ polymerization. The structure and properties of modification flame retardant were measured by nuclear magnetic resonance (NMR), thermal gravity analysis (TGA). The results indicated that the modification flame retardant was more suitable for polymerization. The TGA, limiting oxygen index (LOI), vertical flame test, and scanning electron microscope (SEM) were devoted to discuss the flame retardant properties. It suggested that the nanoSiO2 particles increased char residue, and the nanoSiO2 particles were conducive to the formation of dense stable carbon layer, inhibiting the expansion of the carbon layer to form holes, the nanoSiO2 particles improved the droplet of copolyester. The highest LOI of copolyester is 34.8±0.1%, the UL94 is V-0 grade. The copolyester fiber has excellent mechanical, flame retardant and anti-droplet. This can meet the requirement of household textile decoration and use.