The invention discloses decorative fragrant mud and a preparation process thereof, the raw materials are natural plant aromatic substances, resin, wood and the like, the processed fragrant mud coating can emit the natural aromatic odor of plants, can be used as a decorative material, can play roles in refreshing air and improving the environment, and is non-toxic, free of peculiar smell, waterproof, and good in air permeability, the product has the decorative effect, people can enjoy the incense culture at any time without going out while playing a role in decoration, and the incense can be widely applied to residential houses, office buildings, hospitals, schools, hotels, shopping malls, underground garages, pharmaceutical factories, food factories, ships and the like to improve the indoor environment air quality, decoration and protection.