The invention discloses a circular nickel-metal hydride battery and a manufacturing method thereof, which solve the problems of an existing circular nickel-metal hydride battery that the internal resistance is large, the current leakage phenomenon is likely to occur, the machining process is complicated and the like. The upper surface of a positive confluence sheet (3) is connected with the lower surface of a positive electrode (1), a pressure releasing rubber sheet (2) is arranged between the positive confluence sheet (3) and the positive electrode (1), foam nickel of a negative pole piece is connected with the upper surface of a negative confluence sheet (7), the lower surface of the negative confluence sheet (7) is connected with the upper surface of a disc-shaped negative electrode (8), the positive electrode (1) and the negative electrode (8) are arranged on two ends of a cylinder and form a basic cell, the basic cell is arranged in an insulation drum (5), and the outer surface of the insulation drum (5) is provided with a metal shell (4). The circular nickel-metal hydride battery has the advantages of small internal resistance, small current leakage, simplicity in machining process, easiness in automatic production, good safety and the like, and large-capacity batteries are easy manufacture.