The invention discloses a luminous coating and a preparation method thereof. The luminous coating comprises particles and protective rubber. The preparation method comprises the following steps: (1) the particles are prepared; (2) the protective rubber is prepared; and (3) the particles and the protective rubber are mixed to prepare the luminous coating. The luminous coating has the advantages that the luminous composition contained in the coating can absorb various ultraviolet lights and visible lights; and the unique property beautifies the environment and produces huge economic and social benefits. The total raw materials of the product are noncombustible, nonexplosive and nontoxic, are completely reacted and assimilated in the production process, do no produce exhaust gas, waste residue or wastewater. The adopted luminous agent has no radioactive harm and no environmental pollution. The production process and the construction process have no harm to human body; and the safety indexes fully meet the environment-friendly requirement. The material has the characteristic of light absorption in daytime and irradiance in nighttime, and can produce unique decorative effect and energy-saving effect.