The invention discloses fireproof mud used for installation of a power cable, and belongs to the technical field of fireproof mud. The fireproof mud is composed of, by weight, the raw materials of 25-28 parts of condensed polycyclic aromatic hydrocarbon resin, 15-20 parts of epoxy resin, 8-10 parts of chlorinated paraffin, 14-18 parts of clay, 11-13 parts of porcelain clay powder, 7-9 parts of perlite, 6-9 parts of quartz sand, 5-7 parts of bauxite chamotte, 2-4 parts of magnesium hydroxide, 6-8 parts of tributyl citrate, 4-6 parts of ethylene glycol, 7-9 parts of ammonium phosphate, 2-4 parts of antioxidant, 1-2 parts of anti-corrosion agent and 1-3 parts of antistatic agent. The invention further discloses a preparation method of the fireproof mud used for installation of the power cable. The fireproof mud is easy to prepare, environmentally friendly, low in pollution and good in durability, and has the effects of good fire resistance, corrosion resistance, water resistance and static resistance.