According to the concept of fire life cycle assessment (LCA), a new type of intumescent flame retardant was designed and synthesized by chemically bonding chitosan, phosphorus pentoxide and melamine. The resultant compound, chitosan ethoxyl melamine phosphate (CEMP), was characterized by FTIR, 1H NMR, 31P NMR, XRD and SEM. The performance of CEMP and organic montmorillonite (OMMT) was evaluated in the substrate of epoxy resin (EP) with limited oxygen index (LOI), UL-94, cone calorimetric test (CCT), TGA and TG-IR. As a result, intumescent flame retardant EP (EP3) containing 30.6% LOI and V-0 rating was prepared by adding 3 wt% OMMT and 15 wt% CEMP. The CCT results indicated that CEMP and OMMT reduced the peak of heat release rate (PHRR) to about one fourth that of pure EP and total heat release (THR), 1/2. Decomposition of EP and EP3 was traced from 100 to 600°C by TG-IR.