The invention discloses production technology for watermark pattern cloth and a production device thereof, which belong to the technical field of textile printing and dyeing. A method thereof comprises the steps: arranging a pattern making device at the appropriate position of a sizing-dyeing combined machine; manufacturing a basic pattern with appropriate color and light and shade contrast on a cotton tape during the finishing of the dyeing and sizing of the cotton tape; using a pattern arrangement device for pattern rearrangement to reconstruct a needed fabric covering pattern; positioning various warp yarns, and coiling the warp yarns to a weaving cloth-roll; and finally obtaining finished watermark pattern cloth through registration, healding, reeding, weaving and appropriate afterfinish. The production device thereof comprises the pattern making device and the pattern arrangement device. The production technology can ensure that processes such as dyeing, pattern making and sizing are finished at one time, reduce repeated work, save a large quantity of energy sources, also has clear ridges as well as soft and natural color of the fabric covering pattern and exquisite fabric covering, but can also achieve the straightforward and unpretending style, and can also reduce the pollution and production cost.