The invention discloses a water-based weather-proof stain-proof thermal reflective insulation coating which comprises the following components in percentage by mass: 30%-50% of film forming emulsion, 10%-20% of heat reflection pigment, 6%-15% of hollow microspheres, 5%-10% of fillers, 3%-8% of a water repellent agent, 4%-8% of an assistant and the balance of de-ionized water. By introducing the industrial water repellent agent, the coating is excellent in weather resistance, stain resistance and adhesion on basic materials, and then the reflective insulation property is kept for a long time. The invention further provides a preparation method of the coating; the preparation method comprises the following steps: stirring, uniformly mixing, filtering, and packaging. According to the preparation method, the damage on the hollow microsphere structures can be reduced to the maximum extent, and the coating is guaranteed to be good in heat insulation property; in addition, the coating is low in VOC (volatile organic compound) content and environment-friendly, and the preparation process is simple and easy for large-scale industrialized production.