Foam insulation material was prepared by recycled powder (RP) using wet foam mixing method. The effect of slurry composition on foam survival state was discussed by measuring foam stability time, slurry setting process, compressive strength, dry density, porosity and thermal conductivity. The maximum content of RP was also investigated. The results show that there is a suitable matching state between the stability of foam and the viscosity and setting process of slurry. The preformed foam has a good survival state when the water to solid ratio is 0.80, the viscosity of slurry is about 1.7 Pa·s, and the final setting time of slurry is less than 30 min. The maximum content of RP can reach 70%. The compressive strength of prepared foam insulation material is 1.15 MPa, and the thermal conductivity is 0.118 W/(m·K), which meet the requirements of JG/T 266—2011 foam concrete standard A06 grade.