The present invention provides a functional material and a method for preparing the same, as well as a sealing material and a display panel, which belong to the display technical field and can solve the problem that existing display devices will produce pollution. The functional material of the present invention includes an inorganic powder whose surface has a modified layer, wherein the inorganic powder includes: any one or more of aluminum oxide, magnesium oxide, zinc oxide, zirconium oxide, silicon dioxide, titanium dioxide, boron oxide, diiron trioxide, calcium oxide, potassium oxide, sodium oxide and lithium oxide; the modified layer is generated by a reaction of a dianhydride and a diamine. The sealing material of the present invention includes the above functional material. The display panel of the present invention includes a sealing structure made of the above functional material.