The invention relates to a chromium-based alloy material and a production method thereof. The chromium-based alloy material is characterized by comprising the following compositions: by mass, 4-6% of Fe, 0.5-1.5% of Y2O3, 2% or less of unavoidable impurities, and the balance Cr, wherein Fe is added by employing the form of Fe-Cr mother alloy, and the balance Cr belongs to an electrolyzed chromium powder or a reduced chromium powder. The production method successively comprises the following steps: design of material composition, mixing, compacting, de-waxing, sintering, cooling, analyzing and detecting. Because iron is added by employing the form of mother alloy, the distribution of iron is more uniform; and observed under a scanning electron microscope or a metallographic microscope, the iron has no aggregation, and thus the alloying effect of iron is fully performed, the performance of a part is improved, and the part has similar thermal expansion coefficient compared with a material added with a pure iron powder.