The invention discloses an inorganic multifunctional paint taking potassium silicate as the film-forming substance, and a preparation method thereof. The paint is composed of nano TiO2, tourmaline powder, meerschaum, laubanite, China hemp fiber powder, diatomite, titanium dioxide, talcum powder, calcium ash powder, calcium carbonate, kaolin, cellulose ether, and potassium silicate. The inorganic multifunctional paint taking potassium silicate as the film-forming substance does not contain any chemical auxiliary agent, which exists in the conventional emulsion paint; moreover, takes inorganic potassium silicate as the film-forming substance, thus does not contain any organic compound, saves the chemical raw materials used in the conventional emulsion paint, avoids to generate the volatile organic compounds (VOC), which pollutes the environment, at the same time; integrates the functions of low carbon, saving energy, decomposing formaldehyde, purifying the air, releasing the negative ions, modulating the air humidity, preventing fire, insulating the sound, killing the bacteria, and the like; and can be widely applied to the decoration of outer walls of buildings.