This disclosure provides a hydrogen storing alloy and a production method thereof. The hydrogen storing alloy has a chemical composition of a general formula R(1-x)MgxNiy, wherein R is one or more elements selected from rare earth elements comprising Y, x satisfies 0.05≦x≦0.3, and y satisfies 2.8≦y≦3.8. The ratio of the maximal peak intensity present in a range of 2θ=31°-33° to the maximal peak intensity present in a range of 2θ=41°-44° is 0.1 or less (including 0), as measured by X-ray diffraction in which a Cu-Kα ray is set as an X-ray source.