In this paper, a composite thermal insulation mortar was prepared with magnesium oxychloride cement and polystyrene (EPS) particles. The influence of EPS particles content on the mechanical strength, density and thermal conductivity of composite thermal insulation mortar was studied. Also, the effect of fly ash on the density and thermal conductivity of the mortar was researched. It was shown that: (1) Generally, EPS particles could reduce the compressive strength, flexural strength, density and thermal conductivity of the mortar. The 28 days compressive strength and 28 days flexural strength decreased by 93.3 % and 81.3 % respectively, with the content of EPS particles from 0 % to 0.486 %. Also the density of the mortar was reduced from 2043 g/dm3 to 805 g/dm3, and the thermal conductivity was fell from 0.4093 W/(m·K) to 0.2191 W/(m·K). (2) Small amounts (less than 5.487 %) of fly ash could increase the density and thermal conductivity. However, when the content of fly ash was more than 5.487 %, the density and thermal conductivity of thermal insulation mortar were significantly reduced.