The invention discloses a microchip tracer packaging structure and a packaging method. The packaging structure comprises a composite material wrapping body, which is preferably spherical. The composite material wrapping body is internally and fixedly provided with a sensor circuit device. A sensing element of the sensor circuit device is exposed on the surface of the composite material wrapping body so as to sense external parameters. The sensor circuit device comprises a sensor, a data acquisition circuit board and high-temperature cell and the like, and electrically-connecting wires between the components above are preferably high-temperature-resistant varnished wires. The composite material is casted with the help of a die, and a microchip tracer is fixedly arranged in the composite material, so that an electric-insulation high-temperature-resistant packaging effect is achieved. The microchip tracer packaging structure has better temperature-resistant and pressure-resistant performance and is small in packaging density; and the packaging method is a pollution-free and low-cost packaging technique, and is especially suitable for packaging a lightweight microcircuit under high temperature and high pressure environment in a shaft.