The invention provides waterproof paint for decoration and a preparation method of the waterproof paint. The waterproof paint is prepared from the following components: epoxy resin, butyl p-hydroxybenzoate, carboxy methyl cellulose, white emulsion, ethylenediamine, nano silicon dioxide, talcum powder, castor oil, polyether glycol, modified starch, diluting agent, polyurethane film forming agent, binder and water. The prepared waterproof paint has the characteristics of adaptability to the deformation of a base layer, and high binding strength, is difficult to separate from the base layer, excellent in ultraviolet aging resistance and low-temperature resistance, also has the characteristics of high weather resistance, water resistance and high contamination resistance, and is simple in preparation method, free from needing special preparation tool, wide in source of raw materials, low in cost, nontoxic, pollution-free, and suitable for mass popularization and production.