The invention relates to external wall flexible waterproof putty powder and a preparation method thereof. The flexible waterproof putty powder consists of the following components according to weight percentage: 22% of cement, 20.5% of heavy calcium carbonate, 15% of quartz powder, 8% of diatomite, 8% of talcum powder, 5% of kaolin, 5% of ash calcium, 3% of ethylene oxide, 2% of a retarder, 0.3% of HPMC, 3% of latex powder, 2% of wollastonite powder, 2% of a catalyst, 0.4% of a dehydrating agent, 0.5% of wood fiber, 0.3% of starch ether and 3% of other fillers, wherein the particle size of the heavy calcium carbonate powder is controlled as follows: d97 is smaller than 10 microns, d50 is 1.5 microns, the whiteness is greater than 95%, and the CaCO3 content is greater than or equal to 98%; the quartz powder with 1-3 microns accounts for 57%, 5-8 microns for 22%, 9-15 microns for 13%, and 15-18 microns for 8%; the diatomite is 260-300 mesh; for kaolin, d97 is about 15 microns, d50 is about 2 microns, and the whiteness is greater than 92%; the retarder includes 72% of a citric acid retarder and 28% of a sodium polyphosphate retarder; the length-diameter ratio of wollastonite powder is greater than 10; HPMC adopts hydroxypropyl methyl cellulose with the viscosity of 100,000. The external wall flexible waterproof putty powder has the characteristics of being white, fine and smooth, good in construction workability, high in strength, good in water resistance and anti-cracking.