The invention discloses a microbe transglutaminase modified soya flour-based wood adhesive and a preparation method thereof, and relates to a wood adhesive and a preparation method thereof. The microbe transglutaminase modified soya flour-based wood adhesive solves the problems that the conventional formaldehyde-type adhesives constantly release formaldehyde, a mode of copolymerizing or blending a soy-based adhesive and synthetic resin improves the water resistance but causes existing volatile toxic substances, consumes a great deal of energy and pollutes environment, and isolated soy protein is adopted as a raw material to modify the soy-based adhesive to cause high cost. The adhesive of the invention is prepared from water, defatted soya flour and microbe transglutaminase. The preparation method comprises the following steps: 1, weighing raw materials; 2, after temperature rise of the water, adding the defatted soya flour, and stirring to prepare slurry; and 3, adjusting pH value of the slurry, adding the microbe transglutaminase, performing stirring reaction, adjusting pH value, stirring again, discharging, and cooling to room temperature. The adhesive has low formaldehyde release, low cost, low energy consumption and no environmental pollution in the using process.