Paste for preparing red pepper paste using modified starch and a preparation method thereof are provided to prevent a phase separation phenomenon even in long term storage and to improve storage stability and physical stability. Paste for preparing red pepper paste is composed of 10-30 parts of modified starch on a basis of 100 parts of a mixture containing water, rice flour, malt extract, fermented soybean powder, cayenne pepper, salt and rice flour. The modified starch is the acetylated starch. The acetylated starch represents acetylated rice starch or acetylated tapioca starch. The acetylated rice starch is prepared by reacting rice starch to acetic anhydride. The red pepper paste is prepared by mixing 30-50 parts of fermented soybean paste, 70-90 parts of cayenne pepper and 30-40 parts of salt. The red pepper paste is fermented at room temperature for 10-15 weeks. The malt extract is prepared by dipping 30-50 parts of malt in 3 times the amount of water.
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