Based on the analysis of traditional manual process of the color bead tube, a fully automatic color bead tube external decoration paper wrapping machine was designed by adopting the PLC control technology and combining the electricity and vapor, with the functions of automatic feeding, gluing, delivering, packaging and unloading. The machine consisted of vacuum suction feeding device, loading/unloading activating device, gluing device, clamping device and wrapping device, and it could be applied to various specifications of automatic wrapping of color bead tube external decoration paper. It could complete the task of wrapping and decorating color bead tube outer paper at the speed of 20~30 pc/min, with the wrapping bead tube length of 600~1 200 mm, outside diameter of 1~30 mm, and the packaging confetti of width of 40~130 mm, the length of 620~1 220 mm. The results showed it enhanced the production efficiency and reduced labor intensity with the improvements in packaging quality and security. It also provided an effective way to the automatic production of external decoration paper wrapping of the color bead tube filled with gunpowder.