A fabrication method of a dye polarizer and a display panel are provided. The fabrication method includes: dissolving a dye mixture and a reactive monomer in a solvent to form a polarization film solution, in which the dye mixture is formed by mixing multiple dichroic dyes and the dye mixture functions to absorb visible light of all wave band; coating the polarization film solution one a base, followed by alignment, to allow the reactive monomer to cure on the base; and repeating the step of forming the dye polarization film for n times to form a dye polarizer including n+1 stacked layers of the dye polarization, where n is a nature number greater than or equal to 2. The display panel includes the dye polarizer that is formed with the fabrication method described above.