The invention provides a chenille fabric and a production method thereof. The method comprises the following steps: S1, yarn preparation; S2, grey fabric weaving; S3, grey fabric dyeing; S4, fabric after finishing. Warp yarn of the chenille fabric is nylon air-covered spandex yarn, weft yarn comprises first weft yarn and second weft yarn, the first weft yarn is ring spun viscose yarn, the second weft yarn is chenille yarn, and the first weft yarn and the second weft yarn are arranged in proportion. The woven grey fabric is dyed, the dyed grey fabric discharged from a dye vat is dehydrated andsubjected to opening and setting, and one or more of a hydrophilic softening agent, a bulking agent, an antistatic agent and a fixing agent is added according to the proportion of the chenille yarn inthe fabric during setting. The fabric is comfortable and soft, width and length of the fabric are controlled in the whole production process, and the fabric is compact in structure, is lint-free, avoids leakage of spandex and has good dimensional stability; compared with the traditional chenille fabric, falling of lint fiber, exposure of spandex and poor abrasion resistance are greatly improved,and the chenille fabric can be applied to menswear with frequent friction during using and the like.