A display panel and a manufacturing method thereof are provided. Each pixel of the display panel includes a transmission region and a reflection region, and the display panel includes a first polarizer, a first base substrate, a first alignment layer, a liquid crystal layer, a second alignment layer, a second base substrate, and a second polarizer. A reflection layer is provided between the second alignment layer and the second polarizer in the reflection region. The liquid crystal layer in the reflection region includes nematic liquid crystal and a polymer network. The liquid crystal layer in the transmission region includes a liquid crystal mixture including the nematic liquid crystal and polymerizable monomers. The polymer network in reflection region is formed by polymerizing the polymerizable monomers in the liquid crystal mixture.