The invention discloses lithium iron phosphate water-based positive electrode slurry and a preparation method thereof. The water-based slurry comprises the following components in percentage by mass:40%-50% of lithium iron phosphate powder, 2%-6% of a conductive agent, 2%-5% of a water-based binder, 0.5%-2% of a dispersing agent and the balance of deionized water. The preparation method comprisesthe following steps of: S1, preparing a composite glue solution, S2, preparing a conductive dispersion liquid, S3, preparing a lithium iron phosphate dispersion liquid, S4, mixing and dispersing forthe first time, S5, mixing and dispersing for the second time, and S6, conducting vacuum defoaming and standing. The lithium iron phosphate water-based positive electrode slurry prepared by the methodis uniform in dispersion, good in consistency and stability and convenient to coat; meanwhile, the solvent selected by the slurry is a water-based solvent, so that the slurry is environment-friendly,pollution-free and low in cost; the preparation method is simple and convenient to operate, high in production efficiency and suitable for batch production.