The invention relates to an ammonia-free low-VOC interior wall emulsion and a preparation method thereof. The invention belongs to the technical field of building coatings. The emulsion is prepared from the following components in percentage by mass: 30-55% of water, 0.5%-3% of an emulsifier, 0.1%-3% of persulfate, 0.1%-3% of tert-butyl hydroperoxide, 0.1%-3% of a reducing agent, 10%-60% of styrene, 5%-30% of butyl acrylate, 0.5%-3% of acrylic acid, 0.5%-3% of methacrylic acid, 0.1%-6% of a functional monomer I and 0.1%-6% of a functional monomer II, wherein the functional monomer I is 2-methacryloyloxyethyl phosphate, and the functional monomer II is one or a mixture of more than two of ethylene glycol dimethacrylate, diethylene glycol dimethacrylate, 1, 3-butanediol dimethacrylate, 1, 4-butanediol dimethacrylate and allyl methacrylate. The interior wall emulsion has the advantages of no ammonia, low VOC, effective improvement of the smell, low energy consumption, consideration of theglass transition temperature and the lowest film forming temperature, and improvement of the scrubbing resistance and other performances of the emulsion.