The invention discloses a thermal velvet composite fabric and a processing technology thereof. The composite fabric comprises surface fabric, a connecting layer and lining velvet. According to the surface fabric, yarns are prepared by spinning of long-staple cotton fibers and then the yarns are woven into the surface fabric by the adoption of a Maya circular knitting machine. According to the lining velvet, spandex fiber and polyester fiber are woven into the lining velvet by the adoption of a three-line warp knitting machine. By a hot-pressing technology or a needle punching technology, the surface fabric, the connecting layer and the lining velvet are compounded as a whole. The fabric of the invention has excellent thermal insulation performance, and the fabric is warm and comfortable, has strong abrasion resistance, has good thermal insulation performance and antibacterial performance, and is an excellent raw material for high-grade thermal underwear and home textile fabric.