The invention provides a fast recovery diode and a manufacturing method thereof. The diode comprises an N-type silicon substrate (1) having three spaced P-type silicon regions (3) and having an oxide layer (2) on the surface, a polycrystal layer (5) arranged on the oxide layer (2), an anode metal level on the polycrystal layer (5), and a cathode metal level arranged on the N-type silicon substrate (1) and corresponding to the anode metal level, wherein the P-type silicon regions (3) have deep level doped areas (4). The manufacturing method includes 1) performing initial oxidation; 2) forming an active region and a pressure-dividing ring; 3) forming a PN junction; 4) performing polycrystalline growth; 5) performing service life control; 6) realizing a polycrystalline field plate; 7) forming an anode metal electrode and performing surface passivation; and 8) forming an Al/Ti/Ni/Ag or Ti/Ni/Ag cathode metal electrode. The manufacturing method realizes laser annealing terminal protection by means of polycrystalline, thereby preventing the overpressure resistance failure caused by the terminal damage due to the laser annealing.