The invention discloses a heat insulation coating for external walls and a production method thereof, belonging to the field of chemical building materials. The heat insulation coating for external walls is prepared from the following raw materials in parts by weight: 200-250 parts of water, 180-220 parts of titanium dioxide, 160-200 parts of aluminum silicate, 100-150 parts of bentonite, 360-400 parts of silicon-acrylate emulsion, 30-50 parts of thermal insulation material, 6-7 parts of a dispersing agent, 3-5 parts of a coalescing agent, 7-8 parts of a defoaming agent, 2-4 parts of a levelling agent, 3-5 parts of mildew preventive, 1-3 parts of a thickening agent and a proper amount of a PH regulator. The production method of the coating comprises the following steps: stirring and dispersing the raw materials in ratio; grinding and filtering; thickening; and performing PH treatment to obtain the target product. The produced coating has heat-insulation, waterproof, anti-corrosion, high-adhesion, environment-friendly, non-toxic, antibacterial and self-cleaning properties and the like.