The invention provides a diatomite coating with formaldehyde adsorbing and decomposing effects. The diatomite coating is formed by compounding raw materials comprising a diatomite dispersion liquid loaded with a material capable of decomposing formaldehyde, a 5040 dispersant, 2,2,4-trimethyl-1,3-pentanediol monoisobutyrate, a Kh-550 type silane coupling agent, a polyacrylate thickener, 2-amino-2-methyl-1-propanol, kaolin, mica powder, titanium dioxide powder, octyl phenol polyoxyethylene ether, ethylene glycol, a 705 EVA emulsion, an AGITAN-208 defoaming agent, isothiazolinone, water and the like, wherein the diatomite dispersion liquid loaded with the material capable of decomposing formaldehyde is formed by compounding a Cu / Al2O3 catalyst, anatase-type nanometer titanium dioxide, nanometer tungsten trioxide, diatomite, a 5040-type dispersant, a 405 wetting agent, an AGITAN-208 type defoaming agent, a 400 polyethylene glycol, 2-amino-2-methyl-1-propanol, a Kh-570 type silane coupling agent, a TT-935 thickener and water. The prepared product has formaldehyde adsorbing and decomposing effects.