The invention discloses a biomass internal wall paint and a preparation method thereof, and aims to solve the problems of high harmful substance content and especially high formaldehyde content in the existing internal wall paint. The preparation method comprises the following steps: taking softened water, dodecenyl starch aluminum succinate, dispersing agent, wetting agent, titanium white, calcined kaolin, highly-crosslinked porous starch, ground calcium carbonate and light calcium carbonate, adding into a dispersion machine, dispersing at the high speed of 1500 r / min for 20-40 minutes, lowering the speed to 500 r / min, sequentially adding the composite modified starch emulsion, propanediol and defoaming agent, and uniformly dispersing to obtain the composite modified starch-base biomass paint. The obtained biomass internal wall paint has the advantages of delicate paint film, scrub resistance, low VOC (volatile organic compound) content and no formaldehyde, has favorable humidity regulation function, and is green and environment-friendly.