A frame sealant composition and a method of preparing the same, a liquid crystal panel containing the frame sealant composition. The frame sealant composition comprises a resin, a catalyst, a solvent, a hydrophobic silica filler, and silicon spheres; wherein, the hydrophobic silica filler has a shape of irregular polyhedron. The optimum of hydrophobic silica particles increases the whole surface area of the silica particles and correspondingly enhances the hydrophobicity of the frame sealant composition. The frame sealant composition further comprises a dispersant, the addition of which makes the silica fillers more evenly distributed in the frame sealant composition and avoids void caused by the uneven distribution. Even distribution of silica fillers in conjunction with an increase of specific surface area functions to enhance the waterproof property of the frame sealant composition, such that the liquid crystal panel sealed with the frame sealant composition can better block external moisture and prevent internal metal wires from corroding.