The invention relates to a button battery and a manufacturing method thereof. The button battery comprises an encapsulation shell, a battery cell mounted in the encapsulation shell and a conductive terminal connected with the battery cell; the encapsulation shell comprises a first shell and a second shell; the first shell and the second shell are connected through hot melting to seal the battery core; the battery core comprises a positive electrode piece, a diaphragm piece and a negative electrode piece and forms a cylindrical arrangement through laminated winding of the positive electrode piece, the diaphragm piece and the negative electrode piece. The button battery provided by the invention has the benefits that the electrode battery core in the cylindrical arrangement is formed throughthe circular winding of the positive electrode piece, the diaphragm piece and the negative electrode piece, so that the energy density of the button battery is effectively increased; moreover, the encapsulation shell of the button battery in the scheme can be subjected to hot melting treatment at a certain temperature, so that the sealing treatment of the button battery is realized. Therefore, the external leakage of an organic solvent and an electrolyte as well as the short-circuit phenomenon easily occurring in positive and negative electrodes can be effectively prevented.