The invention discloses epispastic wallpaper and a preparation method thereof. The preparation method comprises the following steps: weighing PVC (Polyvinyl Chloride), cyclohexanone, chlorinated paraffin, n-hexyl alcohol, TCP (Tricalcium phosphate), titanate coupling agents, foaming agents, octyl epoxy stearate, alkyl benzene sulfonate, tin protochloride, plasticizing agents, ammonium polyphosphate, antimony trioxide, pentaerythritol and barium stearate in parts by weight; uniformly mixing, then carrying out plastication, two-roller plastication and four-roller plastication, compounding, plasticizing, embossing, foaming, and then cooling and rolling. The epispastic wallpaper disclosed by the invention achieves the oxygen index at 35-45, is self-extinguished within 15-25 seconds after being ignited, generates a small amount of toxic gas during combustion, achieves the tensile strength at 20-30 MPa and the elongation at break of 150%-250% without being cracked at -30 DEG C.