The embodiment of the present application provides a display panel and a manufacturing method thereof. The display panel comprises a light-emitting device layer, a first optical structure layer, a second optical structure layer and an anti-reflection layer. The light-emitting device layer comprises light-emitting diodes and a retaining wall. The second optical structure layer is filled in the opening areas. Meanwhile, a refractive index of the second optical structure layer is greater than a refractive index of the first optical structure layer. The light extraction rate and display effect are improved with the optical structure layers with different refractive indexes and the retaining wall.