The invention relates to an athermal arrayed wavelength grating with a temperature compensation function and a manufacturing method thereof. The athermal arrayed wavelength grating comprises a base plate, an arrayed wavelength grating chip and a temperature compensation component, wherein the base plate comprises a first base plate part and a second base plate part; the temperature compensation component enables the first base plate part and the second base plate part which form the base plate to relatively move in parallel in a plane where the base plate is located; the arrayed wavelength grating chip is cut into a first chip part and a second chip part which move relative to each other; the first chip part and the second chip part are respectively fixed on the first base plate part and the second base plate part. Therefore, relative displacement in the direction perpendicular to the base plate is avoided, and the risk of loss change is greatly reduced; furthermore, the athermal arrayed wavelength grating has the characteristics of being low in insertion loss, capable of realizing a Gaussian or flat spectrum and capable of applying an AWG chip conventionally used for thermal AWG packaging.