A low cost thermal insulating material can be produced by compounding an active xonotlite slurry, fired-perlite, HOMO PAN fibers and glass fibers. The maximum service temperature of the product is 800℃; linear shrinkage after 800℃(16 h firing is 0.9%; the cold crushing strength is 1.56 MPa; the flexural strength at ambient temperature is 0.81 MPa; the thermal conductivity at ambient temperature (25℃) is 0.056 and 0.128 W/(m@K) at 800℃. The production cost of such a composite is only 1/3 of that of the normal xonotlite thermal insulators. It can substitute the normal xonotlite thermal insulators on most occasions with a similar cost to that of normal perlite products.