The invention discloses a heat-curable magnetic epoxy resin powder coating and an inductor packaging method thereof. The heat-curable magnetic epoxy resin powder coating is characterized by containing the following substances in percentage by weight: 30 to 50 percent of epoxy resin, 20 to 50 percent of soft magnetic ferrite powder, 10 to 20 percent of a composite curing agent, 5 to 8 percent of a filler and 3 to 8 percent of an assistant. The method comprises the following steps: proportionally mixing the epoxy resin, the soft magnetic ferrite powder, the composite curing agent, the filler and the assistant, performing uniform stirring by virtue of stirring equipment, preparing a flaky dry material, crushing the flaky dry material, impregnating a preheated inductor in obtained powder by virtue of fluidized coating equipment, and performing baking, cooling and packaging. The heat-curable magnetic epoxy resin powder coating and the inductor packaging method thereof have the advantages that the powder has high flowability under the driving of airflow, so that packaging is facilitated without adhesion; the material cost is reduced, and the prepared coating can be easily stored for long; the production efficiency can be improved, the coating can be kept uniform, and the product is stable in inductance and small in error change; the inductance can be increased, the coating can be endowed with an electromagnetic shielding function, and flux leakage is avoided; the saturation resistance of current is improved; the heat-curable magnetic epoxy resin powder coating and the inductor packaging method thereof are applied to improvement of packaging of a vertical plug-in inductor and a packaging material.