The invention discloses a refractory castable composition with heat insulation and wear resistance and application thereof. The castabel composition is prepared by the following steps of taking sintered alumina cement as a cementing agent, taking alumina bubble with different particle grading as aggregate and adding corundum powder, alumina micropowder and composite high-efficiency additives. The refractory castable composition effectively improves the insulation, strength, wear resistance, thermal shock resistance and using temperature of the refractory castable. Especially, the adoption of the alumina bubble aggregate which is sealed and hollow and has higher cylindrical compress strength and micropowder reduces harmful impurities of SiO2, Fe2O3, and the like in the refractory castable, effectively prevents devices and the refractory castable from being damaged for generation of silicon migration phenomenon, overcomes the defects of the common refractory castable and provides beneficial guarantee for safe, stable, long-time, full and better operation of devices.