The application discloses a shrink oil cathodic electrophoretic coating and a preparation method thereof. Add isocyanate and methyl isobutyl ketone into a reaction vessel, pass nitrogen gas, stir and heat at the same time; Terminal polydimethylsiloxane, heat after the dropwise addition, and then cool down after the first reaction; continue to drop ethylene glycol butyl ether into the reaction vessel, heat, and wait for the second reaction to finish , cool down for later use; add epoxy resin to another reaction vessel, add the prepared above-mentioned materials into this reaction vessel, stir, heat, then add acetic acid to neutralize the resin; stop heating, add pure water, and disperse evenly Finished product is prepared. The oil shrinkage electrophoretic paint of the present invention has excellent multiple continuous oil shrinkage effects and hardness, and has the advantages of good original paint stability, easy application, and the like.