The invention discloses an epoxy resin based on uracil and preparation method and application thereof. The chemical constitution of the epoxy resin is shown as the following formula defined in the description. The epoxy resin has high epoxy value, has good mechanical property and thermal property after solidification, and can be widely used for adhesive, paint or other composite material. The preparation method comprises: mixing uracil, epoxy halogenated propane and catalyst to perform a reaction at 90-110 DEG C for 0.5-2 hours, cooling the mixture to 20-40 DEG C, adding alkali compound and water to continue the reaction for 2-5 hours, performing washing, removing the solvent, and drying the mixture to obtain the objective product. The preparation technology is simple, has good controllability, and is easy to industrialize.