The invention relates to building paint and a preparation method thereof, in particular to a building interior decoration purple sand paint and a preparation method thereof. The paint is composed of the following ingredients by weight percent: 61.40% of silicon oxide, 20.16% of aluminum oxide, 7.74% of iron oxide, 0.64% of calcium oxide, 0.07% of sodium oxide, 1.31% of potassium oxide, 1.46% of magnesium oxide, 1.10% of titanium oxide and 6.12% of ignition loss. The preparation method comprises the following steps: firstly, firing purple sand ore for 6 h after being naturally weathered for 6 months; crushing fired slaked purple sand material, screening through sieves, dividing the screened material into four paint raw materials, namely 80-mesh paint raw material, 100-mesh paint raw material, 150-mesh paint raw material and 200-mesh paint raw material, for standby application, and uniformly stirring according to the ratio that 80 kg of redispersible latex powder is added into 1 ton of purple sand slaked powder. The purple sand paint has an obvious comprehensive effect, particularly, can purify air, eliminate formaldehyde and peculiar smell and sterilize, facilitates human body microcirculation regulation, and is scientific and reasonable in preparation process and excellent in conditions.