The invention discloses environment-friendly paint for preventing moisture and expelling parasites of furniture and a preparation method thereof. The environment-friendly paint is prepared by mixing acrylic emulsion, propylene glycol monomethyl acetate, epoxy resin, polyvinyl alcohol, ethyl cellulose, mica powder, ethylene glycol, tung oil, water, cobalt oxide, titanium dioxide and parasite-expelling liquid, wherein the parasite-expelling liquid is prepared from szechwan Chinaberry fruit, wormwood, eucalyptus, geranium, dihydrocapsaicin, menthol and alcohol. The environment-friendly paint has the advantages that the effective parasite-killing matter of the traditional Chinese medicine is extracted by the alcohol, is mixed with the parasite-expelling matter, and then is mixed with the poison-free matter to prepare the parasite-expelling paint; the poison, harm and any side effect are avoided, the parasite-expelling effect is obvious, the efficiency is high, the poison is avoided, the use value is high, and the environment-friendly paint is suitable for being popularized and used.