The invention discloses mite-killing incense and a processing technology thereof, and belongs to the technical field of incense processing. The mite-killing incense comprises the following raw materials in parts by weight: 10 to 15 parts of wood dust, 30 to 35 parts of woody spice residues, 2 to 2.5 parts of nano essential oil microcapsule emulsion, and 5 to 8 parts of sticky powder, wherein the woody spice residues are the combination of remaining solid residues after extracting essential oils from yellow cinnamon leaves, cinnamon bark, cajeput and baeckea frutescens. According to the mite-killing incense provided by the invention, a nano-microcapsule technology is adopted, aromatic alcohol essential oil is stably added to the incense, thus the stability of the incense can be improved, the preservation time of the incense is prolonged, the mite-killing incense has the functions of expelling mites and refreshing, and can reuse waste resources and save energy.