The invention discloses a mud material for producing a gangue baked perforated insulating brick, comprising the following ingredients: 25-40 wt% of loess, 40-65 wt% of gangue, 5-15 wt% of small expended and vitrified ball, and water, wherein, the water content in the mud material is 10-15 %. According to the invention, blank making, air drying, seting, sintering, air cooling and kiln-out step can be carried out according to brickmaking method of the perforated brick in the prior art, wherein, the sintering temperature is controlled to 850-1100 DEG C, and the sintering time is controlled to 6-8 h. Detection result shows that the produced perforated brick by the method disclosed herein has the compressive strength of a compression face being 6.5 MPa, the water absorption being less than 18.3 %, the thermal resistance being no less than 1.1, and the dry shrinkage being less than 0.03 %. The produced perforated brick has the advantages of light weight, heat preservation, thermal insulation, fire resistance, aging resistance, low water absorption, low dry shrinkage and the like. The use of the perforated insulating brick in building construction can reduce the deadweight of the building, and has good heat preservation and fire resistance.