A reflective particulate composition includes a particulate substrate, and an inorganic binder, a pigment, and a hydrophobic coating on the particulate substrate. The composition may have a solar reflectance of 70% or greater. The pigment may include a clay, and the hydrophobic coating may include a (meth)acrylic polymer, a coupling agent, a wax and an antioxidant. A method of making the composition may include mixing the pigment, the inorganic binder, a dispersant and water to form a pigment mixture, adding the particulate substrate to the pigment mixture, heat treating the pigmented particulate, and mixing the pigmented particulate with a hydrophobic coating composition. Alternatively, the method may include first mixing the particulate substrate with one of the inorganic binder or the pigment, and then mixing the resulting composition with the other of the inorganic binder and the pigment, and heat treating the pigmented particulate.