A display panel and a fabrication method thereof are provided. The display panel includes: an array substrate including a display portion and a bending portion connected to a side of the display portion; a functional film layer at a side of the display portion; and a protective layer covering the bending portion. The protective layer and the functional film layer are at the same side of the array substrate. The protective layer includes a first bending portion arranged adjacent to the functional film layer, and a second bending portion connected to a side of the first bending portion away from the functional film layer. A distance between an edge of the second bending portion away from the first bending portion and the functional film layer in a first direction perpendicular to an interface between the display portion and the bending portion is the largest in the protective layer.