The present invention discloses an unsaturated polyester resin with excellent insulating property, wherein the raw materials comprise maleic anhydride, m-phthalic anhydride, tetrachlorophthalic anhydride, a D-33 monomer, pyrogallol, hydroquinone, cobalt naphthenate, styrene, phosphate melamine, methyl ethyl ketone peroxide, a silane coupling agent KH-550, nanometer titanium dioxide, nanometer alumina, micro-nano-fiber, raw ramie, palm fiber, a modified filler, ethylene glycol, diethylene glycol and propylene glycol. The present invention further provides a preparation method of the unsaturated polyester resin with excellent insulating property. The prepared unsaturated polyester resin of the present invention has excellent insulating property.