The invention discloses a valve guide pipe and a powder metallurgy production process thereof. The valve guide pipe is formed by proper powder raw materials at a time through the powder metallurgy production process, and is suitable for batch production, and a mould can be designed to be of a one-mould three-outlet structure, so that the production efficiency is further improved. The utilization rate of materials is high, the density uniformity of products is high, and the density difference between the ends and middle parts of a pressed blank is below 0.2g/ cm<3>. Meanwhile, a reasonable gap is reserved in the valve guide pipe, the valve guide pipe has good self-lubricating performance in the use process due to addition of sulphur, cutting machining of products is facilitated, and the requirements for the size precision and coaxiality of the guide pipe are met; graphite and copper are added, and the forming method of the pressed blank is improved, so that while the high-density pressed blank is obtained, the hardness and conquassation strength of the products are improved. It is detected that the pearlite content of the finally obtained valve guide pipe is larger than 50 percent, and the cementite content is smaller than 5 percent.