The invention discloses a novel insulating composite material and a preparation method thereof and relates to the technical field of insulating materials. The novel insulating composite material is prepared from raw materials in parts by weight as follows: 30-40 parts of polyamide resin, 10-20 parts of epoxy cellulose acetate, 8-15 parts of calcium carbonate, 5-15 parts of silicon nitride, 8-15 parts of modified nano hydroxymethyl cellulose crystals, 3-8 parts of magnesium stearate, 8-13 parts of kaolin, 5-11 parts of silicon dioxide, 5-12 parts of mica particles, 6-14 parts of glass fibers, 2-6 parts of a silane coupling agent, 3-8 parts of a filling agent, 1.5-3.5 parts of an ultraviolet absorbent, 2.2-5.3 parts of an antioxidant, 0.8-4.6 parts of an anti-freezing agent and 1-5 parts ofa flame retardant.