The invention discloses a processing method for enhancing powdery paint through modified red mud. The method includes the following steps of firstly, preparing modified red mud powder, epoxy resin E-12, polyester resin, a flatting agent GLP588, benzoin, a polyoxyethylene polypropanolamine ether defoaming agent, fumed silica, lead chromate yellow PY-34, a dispersing agent NC and a sensitizer LD-608according to mass percentages, adding the materials into a mixer, and conducting pre-smashing and then mixing to prepare an evenly-mixed raw material; secondly, putting the evenly-mixed raw materialinto an extruder, conducting melt extrusion, tabletting and cooling, and then conducting smashing to form sheets; thirdly, putting the sheets obtained through smashing into a pulverizer to be pulverized, and conducting cyclone separating and screening to prepare the indoor powdery paint. The defects of utilizing existing red mud in paint are overcome, the aims of turning waste into wealth and realizing comprehensive utilization are realized, the new approach for preparing the indoor paint is provided, and important economic and environmental benefits are realized.