The invention relates to phenolic foam for external wall insulation and a preparation method thereof, which belong to the technical field of building material. The phenolic foam comprises the following raw materials in portion by weight: 100 portions of myrica extract modified phenol-formaldehyde resin, 1 to 8 portions of a foam homogenizing agent, 5 to 20 portions of a foaming agent, and 10 to 20 portions of a firming agent, wherein the myrica extract modified phenol-formaldehyde resin is prepared from the following compositions in portion by weight: 100 portions of phenol, 200 to 300 portions of a formaldehyde solution, 12 to 25 portions of a myrica extract solution, 0.5 to 8 portions of metal oxide, 4 to 30 portions of a modifying addition agent, and 1 to 20 portions of a mixed catalyst. The phenolic foam has the advantages that the phenolic foam has fine foaming pores, high porosity by closed pore, low coefficient of heat conductivity, low water absorption, high strength and good dimension stability, can be used as an external wall insulating material, has the advantages of simple manufacture, easily obtained raw materials and low cost, and is applicable to mass production.