The invention relates to a colorful plant-based formaldehyde-removing mildew-proof interior wall coating material and a preparation method thereof. The colorful plant-based formaldehyde-removing mildew-proof interior wall coating material comprises a dispersed phase and a continuous phase latex paint, wherein a mass part ratio of the dispersed phase to the continuous phase latex paint is (5-40): (60-95), wherein the dispersed phase comprises a base paint and a protection glue solution, and a mass part ratio of the base paint to the protection glue solution is 1: (1.5-2.5). According to the invention, the defects that when an existing water-based colorful coating material is used on an interior wall, a cover surface is needed, visual fatigue is easily caused, large-area construction is not suitable, and the like are overcome; and pearl powder and noctilucent powder serve as color point particles in water-in-water colorful, are added into a continuous phase with interior wall latex paint as a base, and are cooperated with a protection glue solution, light diffusion powder, acrylic powder, sand texture powder, plant-based emulsion, polyurethane (PUD) emulsion and other preferable raw materials, so that the coating material has the advantages of flat and smooth paint film, frosted feeling, no need of cover surface, high paint film hardness, capability of covering fine cracks, good wall artistic effect, energy saving and environmental protection.