The invention belongs to the technical field of construction materials, and specifically relates to an inorganic thermal insulation mortar toughened by doping wheat straw fibers and an application method thereof. The inorganic thermal insulation mortar is composed of silicate cement, calcium hydroxide, high calcium fly ash, aluminate cement, wheat straw fiber, polyacrylonitrile fiber, vitrified beads, short-cut wheat straw, butyl benzene emulsion, an air-entrainer, starch ether, and water. The problems of common vitrified bead thermal insulation mortar such as high cost, easy shrinkage and cracking, and the like are solved. The provided inorganic thermal insulation mortar has the advantages of good workability and mechanical properties, small shrinkage, no cracking, excellent thermal insulation performance and fireproof property, safety, durability, and flameproof property, and the fireproof property can reach the A grade. Agricultural wastes such as wheat straw and other solid wastes are fully utilized, the production cost is low, the construction is simple and quick, good economic benefits and social benefits can be generated, and the mortar is suitable for thermal insulation and energy saving engineering of inner/outer walls.