The invention relates to multifunctional paint with the functions of water and fire prevention, lighting, noise reduction, safe escape and decoration and a preparation method thereof. The multifunctional paint comprises a polymer emulsion, a filler, a flame retardant, a long afterglow luminescent material, an addition agent and water, and the paint comprises raw materials in weight percentage: 10 to 50 percent of the polymer emulsion, 5 to 30 percent of the filler, 10 to 30 percent of the flame retardant, 10 to 60 percent of the long afterglow luminescent material, 0.1 to 5 percent of the addition agent and 1 to 50 percent of the water. The multifunctional paint is applied to a highway tunnel, an underground garage, an underground urban traffic passage, a civil defence engineering, an underground fortification, an underground warehouse, an underground production workshop and other underground buildings, can well meet the requirements of waterproof and fireproof functions and has obvious energy-saving effect; and with the characteristic of the long afterglow of the luminescent paint, the multifunctional paint exerts the function of illumination after power failure and is used to guide personnel to safely evacuate the scene of an accident. In addition, the multifunctional paint also has certain functions of noise absorption and noise reduction.