The invention discloses a powder coating containing modified attapulgite and a preparation method of the powder coating. The powder coating consists of the following raw materials: modified epoxy resin, epoxidation polybutadiene resin, linear low-density polyethylene resin, modified attapulgite, polyethylene wax powder, film-forming resin, polydimethylsiloxane, high pigment carbon black, methacrylic acid resin, nanosilicon dioxide, triethylene tetramine, antioxygen DLTP (Dilauryl thiodipropionate), diphenylamine and trioctyl trimellitate. The powder coating is a green and environmental-friendly coating, has no toxicity, has high-temperature resistance, contains no solvent and has no VOC (Volatile Organic Compounds) emission; and furthermore, the modified attapulgite is added in the powder coating, so that the compatibility of the modified epoxy resin, the epoxidation polybutadiene resin and the linear low-density polyethylene resin is enhanced, the surface leveling of the powder coating is improved, the powder coating has the advantage of high gloss retention and the decorative property of the powder coating is enhanced; and the qualified rate of the finished product obtained by preparing is high and the industrial mass production can be realized.