The invention provides an insect prevention adhesive for wood processing, and a preparation method thereof, and belongs to the technical field of wood processing. The adhesive is prepared by using sodium silicate, polyvinyl alcohol, lyxose, diethyl 1,4-cyclohexanedicarboxylate, modified alginic acid fibers, polyacrylamide, urea, aluminum sulfate, an antifoaming agent, a curing agent, glycerin, ethyl acetate, a lithium catalyst, wax, a filler, butyl acrylate, methyl acrylate and an insecticide. The adhesive integrates environmental protection with insect prevention, and has the advantages of non-toxicity, no formaldehyde, no pollution to environment, good adhesion and mechanical performances, insect prevention effect, wide insecticidal range, instant superpower penetration, and good loss resistance; after the adhesive is injected to wood and is cured, the adhesive instantly generates insoluble compounds and is nonvolatile; and additionally the preparation method has the advantages of simple production process and easy popularization.