The invention discloses environment-friendly aqueous road paint and manufacturing method thereof. Components such as water, a dispersing agent, inorganic salt fillers, diatomite, a wetting agent, rutile type titanium white powder, photocatalyst, acrylic emulsion, a pH regulating agent, a defoaming agent, a thickening agent, a film forming aid, and the like are sufficiently mixed according to a certain process flow. By utilizing the strong adsorptive capacity of the diatomite, harmful substances in vehicle exhausts are absorbed in a coating containing the photocatalyst, and the photocatalyst absorbs optical energy amount to below bandgap energy under the irradiation of light so as to ensure that electrons of the photocatalyst obtain certain energy to separate from the constraints of atomic nucleuses and electron orbits and become free electrons, thus various harmful gases in the vehicle exhausts, such as carbon monoxide, hydrocarbons, nitric oxides and the like can be oxidized and decomposed to finally form carbon dioxide, water and other innocuous substances having no harm to the human body so as to achieve the purpose of degrading the vehicle exhausts, thereby reducing photochemical smog phenomena.