The invention discloses a method for producing putty powder by using fly ash as a raw material, which comprises the following steps: feeding fly ash into a vibrating screen with an iron removal facility, after screening, storing qualified components with the whiteness greater than 76% for later use, adding a decolorizing agent into the components which do not meet the requirements, and after stirring and decolorizing, centrifugally separating solid components, adding water into the collected solid components, stirring, adding a sodium carbonate solution for neutralization reaction, collecting the solid components by a centrifugal separation device, and drying and grinding the components with the whiteness greater than or equal to 76%. According to the method, the fly ash is used as a raw material to produce the putty powder, iron and carbon in the fly ash are removed through simple procedures of magnetic separation screening, decoloration, water washing, drying grinding and the like, the content of separated effective solid components including silicon oxide and aluminum oxide reaches 86% or above, the produced product is stable in physical and chemical properties, excellent in quality and environment-friendly in performance, the whole production process is easy to operate, the production efficiency is high, the fly ash is low in price, and the production cost of the putty powder produced by taking the fly ash as the raw material is reduced by 45%-55% compared with putty powder sold in the current market.