The invention discloses vitrified microbead thermal insulation mortar and a preparation method thereof. The thermal insulation mortar is prepared from the following raw materials: portland slag cement, lime paste, river sand, vitrified microbeads, sugar calcium, calcium carbonate, white latex, modified attapulgite clay powder, sodium lignin sulfonate, barium stearate, polyester fibers, hydroxypropyl methyl cellulose, polyvinyl alcohol, an organosilicon waterproofing agent and water. The preparation method comprises the following steps: firstly mixing the raw materials such as the vitrified microbeads and sugar calcium, and uniformly stirring, so that slurry A is obtained; then mixing the raw materials such as sodium lignin sulfonate, and uniformly stirring, so that slurry B is obtained; and finally conveying the portland slag cement, the lime paste and the river sand to a mortar stirring machine, and sequentially adding the slurry B and the slurry A, so that the vitrified microbead thermal insulation mortar finished product is obtained. The thermal insulation mortar disclosed by the invention has the advantages that tension and compression strengths and thermal insulation and sound insulation performances are further enhanced compared with the national standard and existing thermal insulation mortar, so that the problems of empty drums, cracks and drops are hardly caused when the mortar disclosed by the invention is applied to a wall body, and durability and practicability of the mortar are improved.