The invention relates to the technical field of LEDs, in particular to a water-based microbead light diffusion coating. The coating is prepared from 20-30 parts of water-based polyacrylic acid resin, 15-20 parts of high temperature resistance organic silicon resin, 5-15 parts of a light diffusion agent, 3-7 parts of an emulsifying agent, 1-1.5 parts of a defoaming agent, 2-7 parts of inorganic pigment, 3-5 parts of a thickening agent, 2-4 parts of a dispersing agent, 1-5 parts of a diffusion agent and 5-15 parts of a mixed solvent. According to the water-based microbead light diffusion coating, the problems of LED lamp glare, light pollution and the like are solved, the light source is uniform, soft and full, the light permeability and light scattering performance are good, the cooling effect is good, and the service life is long.