The invention relates to a smelting separation furnace lining material and a preparation method thereof. According to the technical scheme, the preparation method of the smelting separation furnace lining material comprises the following steps: mixing 48-60wt% of magnesite particles and 10-22wt% of silicon carbide particles, adding 3-4wt% of phenolic resin, mixing, then adding mixed powder, mixing, moulding, and then drying for 24 hours at the temperature of 180-220 DEG C, so that the melting separation furnace lining material is obtained; the mixed powder is obtained by mixing 10-15wt% of Ti(C,N)-SiC-C composite powder, 4-7wt% of magnesite fine powder, 1-3wt% of silicon carbide fine powder, 2-3wt% of crystalline flake graphite fine powder, 0.5-1wt% of carbon black, 1-3wt% of alpha-Al2O3 micro powder, 0.5-1.5wt% of asphalt powder, 2-4wt% of Si powder and 0.5-1wt% of B4C powder. The smelting separation furnace lining material has the characteristics of high temperature resistance, washing resistance, strong FeO and TiO2 corrosion resistance, good oxidation resistance and excellent thermal shock performance.