The invention discloses an epoxy interior wall water-based paint. The epoxy interior wall water-based paint comprises a component A and a component B, wherein the component A is composed of the following components in percentages by weight: 20 to 40% of waterborne epoxy resin, 15 to 25% of distilled water, 5 to 10% of kaolin, 10 to 20% of titanium dioxide, 15 to 25% of diatom mud, 5 to 10% of shell powder, 0.5 to 1.0% of a dispersing agent, 1 to 2% of ethanol, 1 to 2% of a preservative, 0.2 to 0.5% of an antifoaming agent and 0.2 to 0.5% of a thickening agent; and the component B is composed of the following components in percentages by weight: 30 to 40% of a waterborne epoxy curing agent and 60 to 70% of distilled water. The invention provides a self-breathing, low-VOC and sound-absorbable epoxy interior wall water-based paint and a preparation method thereof. The water-based paint is applicable to public places like family places, meeting halls, classrooms and gyms, specifically to places with enclosed environments for long stay of people, or to the public places like meeting halls capable of hosting meetings.