The present invention provides an aqueous epoxy terrace paint, comprising a component A and a component B. The component A comprises 80-90 parts of low molecular weight liquid epoxy resin,2-4 parts of a modified resin compatibilizer and 5-15 parts of a reactive diluent. The component B comprises 20-0 parts of water, 40-45 parts of an aqueous amine curing agent, 3-5 parts of a functional resin, 3-18 parts of a pigment, 10-25 parts of a filler, 0.1-0.5 part of a defoamer and 0.1-0.3 part of a wetting leveling agent. The components A and component B of the aqueous epoxy terrace paint are mixed according to a certain proportion to form a film with suitable working life and good workability. The film has good hardness, wear resistance, flexibility, impact resistance and other physical and mechanical properties and chemical resistance. The invention also provides a preparation method of the aqueous epoxy terrace paint.