The invention provides a production method of high-grade sodium thioglycollate powder. The production method comprises the following steps of firstly, uniformly mixing chloroacetic acid and deionized water according to the mass ratio to obtain a chloroacetic acid solution, then adding sodium carbonate into the chloroacetic acid solution, and uniformly mixing to obtain a sodium chloroacetate solution; secondly, adding sodium thiosulfate into the sodium chloroacetate solution, uniformly mixing and then carrying out temperature-rise condensation to obtain a condensation compound; thirdly, adding sodium hydroxide into the condensation compound, uniformly mixing and then carrying out temperature-reduced mercaptoethylation to obtain a mercaptoethylation product; fourthly, carrying out vacuum drying treatment on the mercaptoethylation product to obtain the high-grade sodium thioglycollate powder. According to the production method provided by the invention, the problems about low grade of products, high transportation expenses, high packing expenses, easiness in oxidation and the like existing the prior art are solved; sodium thioglycollate produced by the production method provided by the invention is in a powder shape and does not generate three wastes; the grade of the product is over 35 percent; the high-grade sodium thioglycollate powder belongs to a green environment-friendly product.