In the present study, three modification methods, including water washing, sodium hydroxide (NaOH), and styrene–acrylic emulsion, were used to modify waste rubber powders. The influence of rubber powders on the mechanical properties and frost resistance of magnesium oxychloride cement was examined, and the different modification mechanisms were also analyzed. Based on the analysis of hydrophilic properties after modification, styrene–acrylic emulsion achieved the best modification effect, while water washing produced the least modification effect; regarding mechanical properties, magnesium oxychloride cement mixed with NaOH modified rubber powders achieved the best modification effect, in which the 28 d flexural strength and compressive strength increased by 41.2% and 59.6%, respectively. During the freeze-thaw cycles, the mass loss of specimens was reduced with an increase in the content of rubber powders. In addition, after 300 cycles, the relative dynamic modulus of elasticity of the blank sample was about 28.12%, while that of the magnesium oxychloride cement mixed with NaOH modified rubber powders was approximately 42.38%. In general, the properties of the modified rubber powder–magnesium oxychloride cement composite material can meet the requirements for engineering materials, which provides a theoretical basis and technical support for the application of rubberized magnesium oxychloride cement.