The invention relates to an agilawood pillow and a manufacturing method thereof, and belongs to the field of agricultural product processing. The agilawood pillow is prepared from, by weight, 20-40 parts of agilawood leaves, 20-40 parts of agilawood blocks, 15-30 parts of aquilaria sinensis and 15-30 parts of semen cassiae. The manufacturing method of the agilawood pillow comprises the steps of washing clearly the picked agilawood leaves, agalloch, aquilaria sinensis and semen cassiae, afterwards, drying the materials, cutting the agalloch into small blocks, cutting the agilawood leaves and aquilaria sinensis into blades, manually removing impurities, conducting radiation sterilization, and afterwards, conducting packaging to finally manufacture a finished product of the agilawood pillow which has fragrant aroma and the functions of soothing the nerves and helping sleep. The agilawood pillow has good health-preserving and health-care effects, and can tonify qi and boost essence, and soothe the nerves and help sleep; moreover, the pillow is unique in fragrance, tolerant to storage and convenient to use and has a good sale prospect.