The invention discloses an ethylene propylene rubber insulation material for longitudinal high-voltage watertight cables of ships and warships and a production method thereof. The method comprises the following steps: adding the ethylen e-propylene-diene mischpolymere, age resister and fire retardant into a banbury for banburying for 3.5min; adding argil, white carbon black and paraffin wax for continued banburying for 2min; adding active agent, and discharging after banburying for 1.5min; filtering the rubber compound with a three-layer filter screen (namely a 60 mesh filter screen, a 60 mesh filter screen and a 80 mesh filter screen) on a rubber filter; and beating into cornucopla on a double-roller mill, adding vulcanizer and co-crosslinker, then beating into cornucopla for 7 times, grinding and slicing after finishing the steps, and then cooling, wherein the materials are as follows in parts by weight: 100 parts of ethylen e-propylene-diene mischpolymere, 1-5 parts of vulcanizer, 1-4 parts of age resister, 15-70 parts of fire retardant, 0.5-10 parts of active agent, 10-20 parts of argil and 2-4 parts of paraffin. The prepared insulation material has the characteristics of low smoke, no halogen, fire resistance, high machinery strengthen, and high insulation resistance, good flexibility, elasticity and viscosity, and can be used for the ships and warships.