The invention discloses a waterproof wall lining indoor coating which is composed of the following components in parts by weight: 20-30 parts of putty paste, 10-20 parts of diatomite, 10-25 parts of carbon, 5-15 parts of Eva emulsion, 3-10 parts of quartz sand, 3.5-7.5 parts of methyl acetate, 2.3-4.5 parts of marigold essential oil, 6.5-12.7 parts of hydroxymethyl propyl cellulose, 10-15 parts of titanium dioxide, 20-28 parts of white latex, 1.2-3.5 parts of perillaldehyde, 5.7-8.6 parts of calcined kaolin, 2.7-6.2 parts of citronellal, 3.5-6.5 parts of 0.4%wt sodium tetraborate solution, 3.5-7 parts of 2,4-imidazolidinone, 1-3 parts of rosin air entraining agent, 1-3 parts of color paste, 25-30 parts of polyacrylamide solution, 10-13 parts of zinc oxide, 2-6 parts of tributyl phosphate, and 30-50 parts of water. Compared with the existing various porcelain-like rigid coatings, the waterproof wall lining coating has the characteristics of being waterproof, damp-proof, mould-proof, free from leakage of water immersion, strong in bonding adhesion, free from dusting and falling, non-toxic and odorless, long in service life and convenient for construction, is suitable for indoor decoration of high-standard hotels, office buildings and houses and apartments, and can be used as a waterproof coating for walls of basements and underground warehouses.