The invention provides an electrical steel plate and a fabrication method thereof. The electrical steel plate comprises a plate-shaped electrical steel substrate, etched grooves on the surface of the substrate, pits distributed on the surface of the etched grooves and Na2SiO3 or Na2SiO3.9H2O fixedly dissolved in the surface of the substrate, wherein the thickness of the substrate is 0.1 to 2 millimeters, and the diameter of the pits is 1 to 100 nanometers. The fabrication method comprises the following steps of: 1) carrying out laser etching treatment; 2) processing the etched grooves with a NaOH solution; and 3) carrying out washing and drying treatment. The electrical steel plate fabricated according to the invention has excellent heat resistant effect, the iron loss reduction effect generated by laser etching cannot be disappeared by annealing processing the electrical steel plate for 2 hours at 800 DEG C, the original magnetic performance is maintained, and moreover, an insulation coating layer on the surface of silicon steel cannot be damaged. The fabrication method is simple in operation and low is cost, and is applicable for industrial production at a large scale.